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Invest. Innovate. Inspire.
For a new India.
ANNUAL REPORT 2014-15

India is at the threshold of a new era of growth and opportunity. This is driven by increasing economic activity, ongoing ‘Make in India’ initiatives and a demographically well-placed, aspirational society.
Reliance Industries Limited (RIL) continues to be a partner in India’s ongoing journey towards economic and social well-being, and remains committed to investing in and innovating for India. RIL is striving to meet and exceed global benchmarks in product quality and customer service with inspiring ideas and strategic investments. From the manufacturing landscape to high-growth consumer service sectors, RIL is achieving superior outcomes that facilitate India’s drive for global leadership.
RIL is delivering industry-leading performance through consistent efficiency in operations and prudent configuration of assets. RIL is making sizable capital investments, focusing on technology and expanding its level of services from the hydrocarbons sector to consumer businesses. RIL innovates for existing businesses and also focuses on developing new business models to deliver g g g y significant value for its growing stakeholder fraternity. In this effort, it collaborates with o s with leading global institutions to help usher in a n era of possibilities. global new is growing o RIL’s focus is to continue growing as a respons responsible organisation, thereby e inspiring progress in the lives it touches. financial a r n
RIL’s financial and operational performanc reflects the strength operational performance extent integration x t n and extent of integration in its operation It also highlights its operations. t management e profi robust risk management strategies, proficiency of its people and efficiency n processes. s efficiency of its processes. The projects t that RIL has undertaken e h and the investments that it has planned will help it propel the that phase h o next phase of growth for itself and Ind for India. contributing substantially strengthen India’s energy o t
RIL is contributing substantially to stre landscape. p landscape. At the same time, it is crea time, creating value for society and spheres e in retail and telecom spheres and rein reinforcing community engagements. m engagements. Contributing n economic gro o Contributing to India’s economic growth and social uplift is present se
RIL’s priority, and it sees its present and future role through the national n prism of national progress.

INSIDE THIS REPORT
CORPORATE OVERVIEW / 02-45
02 /
03/
04 /
08 /
10 /
12 /
14 /
16 /

Reliance at a Glance
Key Performance Indicators
Letter to Shareholders
The Board of Directors
Investing for the Nation
Innovating for the Future
Inspiring Progress
Dimensions of Sustainable
Growth - 4Ps

Strategic Framework
Review of Operations
Reliance Foundation
Awards and Recognitions
Company Information
Major Products and Brands
Product Flow Chart
Financial Highlights

Letter from the Chairman / 04

MANAGEMENT REVIEW / 46-103
46 /
94 /

Management’s Discussion and Analysis
Report on Corporate Social Responsibility

Invest, Innovate, Inspire / 10

GOVERNANCE / 104-201
104 /
122 /
147 /
154 /

Business Responsibility Report
Corporate Governance Report
Auditors’ Certificate on Corporate Governance
Directors’ Report
Review of Operations / 20

FINANCIAL STATEMENTS / 202-315
Standalone / 202-253
203 / Independent Auditors’ Report on
Financial Statements
204 / Balance Sheet
205 / Profit and Loss Statement
206 / Cash Flow Statement
208 / Significant Accounting Policies
212 / Notes on Financial Statements

committed Invest, Inno m t Innovate and Inspire.
RIL remains committed to Invest, Inn new a.
For a new India.

“We must forge a new partnership for a great India. A strong and constructive partnership between industry, government and society.”

18 /
20 /
30 /
32 /
33 /
34 /
44 /
45 /

Consolidated / 254-315
255 / Independent Auditors’ Report on
Consolidated Financial Statements
256 / Consolidated Balance Sheet
257 / Consolidated Profit and
Loss Statement
258 / Consolidated Cash Flow Statement
260 / Significant Accounting Policies on
Consolidated Accounts
261 / Notes on Consolidated Financial
Statements
310 / Salient features of Financial
Statements of Subsidiaries/
Associates/Joint Ventures

SHAREHOLDER INFORMATION / 316-348
316 / Shareholders’ Referencer
329 / Notice of Annual General Meeting
337 / Details Pertaining to Employees as reqired under Section 197(12) of the
Companies Act 2013
Attendance Slip and Proxy Form
Members’ Feedback Form

Late Shri Dhirubhai Ambani

Corporate sustainability related information
Quarterly results and investor presentations

Business Responsibility Report / 104

On the cover:
The cover depicts RIL’s commitment to the growth and progress of all stakeholders through consistent investments and innovations across the energy and consumer businesses. RIL has always partnered India’s all-round progress in line with its philosophy of
‘Growth is Life.’

OTHER REPORTS AND INFORMATION

Founder Chairman

Management Review / 46

www.ril.com/Sustainability/CorporateSustainability.aspx www.ril.com/InvestorRelations/FinancialReporting.aspx View the Annual Report online at www.ril.com/ar2014-15 02-45

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Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Reliance at a Glance

3

| Key Performance Indicators

RELIANCE AT A GLANCE

KEY PERFORMANCE INDICATORS

RIL is India’s largest private sector Company on key financial parameters. It is a significant global player in the integrated energy value chain, and has a growing presence in retail and digital services in India. Built on strong values, RIL is steadfastly rooted in the culture of safety, integrity and commitment. RIL is dedicated to its vision of partnering India’s economic growth and social wellbeing. RIL strives to be a product and service leader across its industries, a great work-place and above all, to create value for its stakeholders and society.

PROFIT & LOSS METRICS (Consolidated)

Turnover (` crore)

Profit After Tax (` crore)

13.0% (year-on-year)
14-15

Refining & Marketing

All figures in ` crore

Revenue 3,39,890 • EBIT 15,827

$ 62.2 billion
` 3,88,494 crore

Petroleum refining
Owns and operates two of the world’s largest and most complex refineries with crude processing capacity of
1.24 MMBPD

$ 3.8 billion
Net Profit

Revenue 96,804 • EBIT 8,291

Polymers, Polyester, Fibre intermediates, Elastomers and Chemicals
Integrated petrochemicals player with Top 10 rankings in key products globally

148
Major products and brands across energy and service sectors

Revenue 11,534 • EBIT 3,181

Exploration and Production of oil and gas
Interests in onshore and offshore exploration and production in India and significant presence in US shale

Producer of polyester fibre/yarn, globally

5th Largest

Producer of PP, globally
Revenue 17,640 • EBIT 417

19,294

10-11

64.8

BALANCE SHEET METRICS (Consolidated)

Networth (` crore)
9.9% (year-on-year)
13-14

9.8% (year-on-year)

14-15

2,18,482

0.74

13-14

1,98,670

0.70

12-13

1,82,030

12-13

0.59

SHAREHOLDERS METRICS

0.55

11-12

0.55

10-11

11.2% (year-on-year)

Dividend per Share (`)
5.3% (year-on-year)
14-15

10.0

13-14

2,66,847

9.5

12-13

2,49,802

12-13

8th Largest

11-12

2,44,757

11-12

12

Digital services
Building a countrywide broadband next generation infrastructure to deliver digital content, applications and services

Conventional E&P blocks

2,621
Retail stores across India

3,00,405

3,42,984

6.9% (year-on-year)
14-15

Revenue 2,747 • EBIT 135

**

Broadcasting and Digital properties
Interests in television, digital content, filmed entertainment, digital commerce, magazines, mobile content and allied businesses
**For 9 months

Jio
Setting up pan India telecom network to provide high speed internet and digital services

9.0
8.5

10-11

13-14

712

12-13
11-12
10-11

351
251
201

* since IPO, i.e. 37 years

516.9

India’s first private sector company to feature in Fortune
Global 500 list of ‘World’s Largest
Corporations’, currently ranking
114th in terms of revenue and
155th in terms of profit, and continues to be featured for the
11th consecutive year

Ranks 194th in the Financial
Times’ FT Global 500 2014 list of the world’s largest companies

Injury Rate (per 100 workforce)
42.2% (year-on-year)

761

619.9
568.9

8.0

SOCIAL METRICS (STANDALONE)

CSR Expenditure (` crore)

675.9

(MARKET CAPITALISATION CAGR OF 31.7%)*

Market Capitalisation (` crore)

10-11

742.3

13-14

10-11

1,54,093

14-15

14-15

11-12

1,69,445

10-11

Book Value per Share (`)

5.7% (year-on-year)

14-15

11-12

(NETWORTH CAGR OF 31.1%)*

Debt Equity Ratio

Producer of PX, globally

Jio Infocomm

*Refer- Page 300 for details (Consolidated Segment Information)

66.2

13-14

Producer of MEG, globally

Media & Entertainment

70.7

11-12

7th Largest

Pan India footprint in organised retail
Retail market leader in several segments with over 12.5 million sq. ft. of retail space and having presence in 200 cities

**

12-13

19,724

Producer of PTA, globally

6th Largest
Retail

76.5

10-11

2,76,372

12-13

2nd Largest
Oil & Gas

80.1

13-14

Annual revenue

` 23,566 crore

Petrochemicals

20,879

14-15

11-12

3,68,571

10-11

22,493

12-13

4,08,392

11-12

4.7% (year-on-year)
23,566

13-14

4,46,339

12-13

Earnings per Share (`)

4.8% (year-on-year)
14-15

3,88,494

13-14

BUSINESSES AT A GLANCE *

(PROFIT AFTER TAX CAGR OF 27.4%)*

14-15
13-14
12-13
11-12
10-11

0.048
0.083
0.095
0.099
0.090

RIL is India’s greenest and most environment-friendly company, ranking 185th among the world’s largest 500 companies, according to
Newsweek’s Green Rankings 2014

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Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Letter to Shareholders

LETTER TO SHAREHOLDERS

` 23,566 crore

Reliance has always believed in investing in India and in businesses of the future. FY 2014-15 was a landmark year for our company.
We have invested over $ 16 billion or over ` 1,00,000 crore in creating growth engines for the future. This is the highest ever in the history of our company and is a testimony to our project execution capabilities.
This is also the highest by any Indian corporate in a single year and is about
0.8% of India’s GDP.

Mukesh D. Ambani, Chairman and Managing Director

Dear Fellow Shareowners,
I am delighted to write to you once again to update you on the performance of Reliance
Industries Limited. Reliance continues to set new benchmarks and records despite a challenging global economic scenario marked by volatile commodity prices, weak growth in certain major economies and dollar appreciation against most major global currencies.

The global economy in FY 2014-15 saw a steep decline in oil prices, which had significant impact on energy businesses. This coupled with slowing growth in some of the leading global economies impacted currencies. But, there was positive news in terms of faster-than-anticipated economic growth recovery in the United States, which provided momentum for the global economic recovery.
India’s economy is in the midst of a recovery with lower fiscal and current account deficit, lower inflation and weak commodity prices. Our country’s growth seems poised to return to a high-growth path.
It is in this context that Reliance continues its quest for sustained growth. I am pleased to inform you that Reliance achieved its highest ever consolidated net profits of ` 23,566 crore ($ 3.8 billion) during the year.
Both our energy businesses and consumer businesses continue to show strong growth potential.

` 15,827 crore

` 1,00,000 crore

Highest ever consolidated net profit in 2014-15

Record EBIT of Refining &
Marketing Business

Invested in creating growth engines for the future

Our refining business delivered a record profit with a healthy gross refining margin. Our Petrochemicals business margins improved on the back of healthy polymer and polyester deltas, partly offset by weak fibre intermediate deltas.

REFINING & MARKETING
The world’s largest refinery complex at Jamnagar maintained a high operating rate of 110%, processing
67.9 MMT of crude oil during the year.
This is in comparison to the average refinery utilization rates of 86.9% in
North America, 80.7% in Europe and
83.5% in Asia. This is a testimony to our operational excellence and world-class assets. The high capacity utilization was supported by Reliance’s ability to process advantaged feedstock, flexibility to upgrade low value products and place products in a dynamic market environment.

PETROCHEMICALS
The steep decline in global energy prices and increased supply from the US led to sharp decline in petrochemical products and feedstock prices. Our integrated operations and diversified feedstock slate coupled with global cost competitiveness helped mitigate some of the risks.

Domestic upstream production was lower due to natural decline in the producing fields. Reliance and its partners are trying to augment production through interventions to partly offset the natural decline.
Our US shale business recorded its highest production and is a material contributor to our earnings.
Reliance further strengthened its leadership position as India’s largest retailer. We have increased our presence to 200 cities.
Our efforts to provide 4G services across the country is gathering momentum. During the year, based on our acquisition of additional spectrum, we have emerged as the largest holder of liberalized spectrum in India.
This will truly be a transformational initiative that will once again validate
Reliance’s ability to conceive and execute large projects across the country. During the year, Independent
Media Trust, of which RIL is the sole beneficiary, acquired the control of Network18 and its subsidiary
TV18. This acquisition will enhance the offering to the customers by integrating telecom, web and digital technologies. Our Refining business delivered record EBIT of `15,827 crore and gross refining margins of $ 8.6/bbl.
During the year, over 300 fuel retailing outlets were commissioned, with plans to re-commission the entire network of 1,400 outlets by the end of FY 201516. Our focus is to ensure consistent and superior customer experience through several technology-enabled initiatives. Our petcoke gasification project, designed to convert low-value petroleum coke into high value syngas is under execution. This will enable increasing self-sufficiency in energy at Jamnagar and also manufacture of other value-added chemicals.
This project will also significantly reduce energy costs for Jamnagar refineries and make them competitive compared to the North American refineries which are benefiting from the shale gas revolution.

RIL is creating significant capacities to further enhance its position amongst the world’s largest producers of petrochemicals, with global scale capacities across the polymer and polyester chain. During the year, our focus was on creation of new capacities with several new plants being added and stabilizing the operations of the new facilities.
During the year, the operations of the new Polyester Filament Yarn (PFY) facility at Silvassa were stabilized and this strengthened our position as one of the global leaders in production of polyester fibre and yarn.
In the current year, RIL started India’s largest Styrene Butadiene Rubber (SBR)
Plant at Hazira with capacity of
150 KTPA. We also expanded our PolyButadiene Rubber (PBR) capacity. This will help in reaffirming our domestic leadership position in the elastomers segment. RIL also started new 650 KTPA PET plant at Dahej, which is one of the world’s largest bottle grade PET resin capacity at a single location. Our new
PTA facility at Dahej with a capacity of 1,150 KTPA was also commissioned

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Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Letter to Shareholders

LETTER TO SHAREHOLDERS (CONTINUED)
“During the year Reliance and its subsidiaries tied-up long-term facilities of nearly $ 6.5 billion. Our facilities with Export Credit
Agencies were accorded ‘Better than Sovereign’ rating by all the ECAs – this was the first time that these multiple agencies accorded such a rating to any corporate in their history.”
Refining & Marketing
The world’s largest refinery complex at
Jamnagar continued to operate at 110% operating rate processing 67.9 MMT of crude oil during the year.

Petrochemicals
The operations of the new Polyester
Filament Yarn (PFY) facility at Silvassa were stabilized and this strengthened our position as the global leader in production of polyester fibre and yarn. Exploration &
Production
Development effort at the two
CBM blocks in Sohagpur East and
Sohagpur West is making significant progress. Reliance expects first production from these two blocks in
FY 2015-16.

Consumer Businesses
Our Retail business sustained its growth momentum by generating record revenues of ` 17,640 crore. Reliance Jio’s ambitious project to provide 4G internet services continues to gather speed.
Independent Media Trust, of which RIL is the sole beneficiary, acquired the control of Network18 and its subsidiary TV18.

during the year. This increases
Reliance’s global capacity share to 4%.
Demand for petrochemicals is strongly linked to economic growth. India’s expected economic growth bodes well for the growth of this business.
We are bringing several new capacities on-stream in time to leverage the expected spurt in demand.
We are building one of the world’s largest ethylene crackers taking advantage of refinery integration at
Jamnagar. The new cracker will be in the top decile in terms of global cost competitiveness on an integrated basis among all the new crackers that are being built. With implementation of all the petrochemicals expansion projects, RIL is likely to be among the top 10 global petrochemicals producers in the world.
EXPLORATION AND PRODUCTION
Our domestic gas production from the
KG-D6 block was lower due to natural decline during the year. RIL and its JV partners stepped-up their efforts to augment production from the field through interventions like side-track wells and onshore terminal booster compressor to partly offset the natural decline in the field.
Development effort at the two CBM blocks in Sohagpur East and Sohagpur
West is making significant progress.
RIL expects first production from these two blocks in FY 2015-16.
Despite extremely challenging pricing environment especially in oil, the

26%

` 761 crore

31% CAGR

Year-On-Year production growth in Shale Gas JV

CSR Expenditure representing
3.35% of post-tax profits

Growth in retail business over
5 years making Reliance the largest retailer in India

US shale business showed strong operational performance. During the
CY 2014, gross JV production showed a 26% year on year growth.

in 20 out of 22 circles in the country.
This is in addition to the pan India spectrum in the 2300 MHz band.

Healthcare, Urban Renewal and
Arts, Culture and Heritage. Our relief and rehabilitation efforts in Kashmir and other areas affected by natural calamities earned significant respect.
During the year, Reliance contributed
` 761 crore towards CSR activities, accounting for 3.35% of profit after tax.

CONSUMER BUSINESSES
Our Retail business sustained its growth momentum by generating record revenues of ` 17,640 crore.
This is a growth of 31% CAGR over the last five years. We also enhanced our presence with 2,621 stores spread across 12.5 million square feet in 200 cities. During the year, we had a net addition of 930 stores – at almost 18 new stores every week. We continue to strengthen our retail offerings to provide unmatched choice and affordable pricing. We are building on our leadership positions in all the format sectors of grocery, apparel and digital products.

ROBUST BALANCE SHEET
RIL enjoys top-notch credit ratings as a result of its financial prudence and strong balance sheet. During the year RIL and its subsidiaries tied-up long-term facilities of nearly $ 6.5 billion. Our facilities with Export Credit
Agencies were accorded ‘Better than
Sovereign’ rating by all the ECAs – this was the first time that these agencies have accorded such a rating to any corporate in their history.
RIL has always been in the forefront of investing in India and its growth.
During the year, as part of our largest capital expenditure cycle, we invested over ` 1,00,000 crore. This large investment spread across all our businesses will create sustained and significant value for our stakeholders.

Reliance Jio Infocomm’s ambitious project to provide reliable (4G) high speed internet services with rich communication and digital services continues to gather speed. We have made significant progress including physical network infrastructure, systems and processes, sales and distribution network, applications and services and content. We are currently working with several strategic partners in deployment and testing activities currently underway.

BUSINESS TRANSFORMATION
Our work on Business Transformation and next-gen people practices continued at an accelerated pace. It is an integral part of Reliance’s strategy to build competitive advantage and use technology for its advantage. We rolled out “Our Values & Behaviours” to guide
Reliance and its talent through our vision and mission in the coming years.

During the year, we were successful in acquiring right to use spectrum in
800 MHz or 1800 MHz bands or both in 13 key circles across India. With this,
Reliance Jio Infocomm has spectrum in either 800 MHz or 1800 MHz or both

COMMITMENT
TO SOCIAL WELLNESS
As a responsible corporate citizen,
Reliance serves the society, through
Reliance Foundation, in the domains of Rural Transformation, Education,

I would like to thank all my colleagues across the country and the globe for their unflinching dedication, commitment and contribution to strengthening Reliance. We are looking forward to continue on our mission of generating sustained value for our stakeholders and India.
I would like to place on record my sincere appreciation to the Board of
Directors for their guidance. I would like to express my gratitude to all our stakeholders for their continuing faith in Reliance.
With best wishes,

Sincerely
Mukesh D. Ambani
Chairman & Managing Director
April 17, 2015

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Invest. Innovate. Inspire. For a new India.

104-201

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Corporate Overview

Annual Report 2014-15

46-103
Management Review

Governance

Financial Statements

Shareholder Information

The Board of Directors

THE BOARD OF DIRECTORS

1

3

6

8

10

12

Shri Mukesh D. Ambani

Shri P. M. S. Prasad

Dr. Dharam Vir Kapur

Shri Yogendra P. Trivedi

Prof. Ashok Misra

Shri Adil Zainulbhai

Chairman and Managing Director

Executive Director

Independent Director

Independent Director

Independent Director

Independent Director

Chairman: Finance Committee

Member: Health, Safety and
Environment Committee, Risk
Management Committee

Member: Human Resources,
Nomination and Remuneration
Committee, Corporate Social
Responsibility and Governance
Committee, Health, Safety and
Environment Committee

Chairman: Audit Committee,
Stakeholders’ Relationship Committee,
Corporate Social Responsibility and
Governance Committee

Member: Stakeholders’ Relationship
Committee

Chairman: Human Resources, Nomination and Remuneration Committee,
Risk Management Committee

11

Member: Audit Committee

2

Smt. Nita M. Ambani
Non Executive,
Non Independent Director

4

Prof. Dipak C. Jain
Independent Director
5

Shri Nikhil R. Meswani
Executive Director
Member: Stakeholders’ Relationship
Committee, Corporate Social
Responsibility and Governance
Committee, Finance Committee
Featured on this page from left to right in order of appearance

Read the profiles of the Board of Directors on page 147

Member: Human Resources, Nomination and Remuneration Committee

7

9

Shri Mansingh L. Bhakta

Shri Hital R. Meswani

Independent Director

Executive Director
Chairman: Health, Safety and
Environment Committee

Dr. Raghunath A.
Mashelkar

13

Independent Director

Shri Pawan Kumar Kapil

Member: Audit Committee,
Human Resources, Nomination and
Remuneration Committee, Corporate
Social Responsibility and Governance
Committee

Executive Director

Member: Stakeholders’ Relationship
Committee, Finance Committee, Risk
Management Committee
Featured on this page from left to right in order of appearance

Member: Health, Safety and
Environment Committee

9

11

INVESTING

FOR THE NATION

At this stage of development, India needs large-scale employment creation through investments in manufacturing, infrastructure, services and agriculture. RIL is currently in the midst of its largest ever capital investment programme aimed at the energy and digital value chain. These investments will create high levels of employment and self-employment opportunities along with productivity gains. RIL is invested in the promise of an empowered and energised India.
RIL has been a pioneer and continues to be at the forefront of ‘Make in India’ campaign.
RIL sees its investments as a contribution towards sustainable economic growth and social prosperity for India.
CREATING VALUE THROUGH TECHNOLOGY, INTEGRATION AND SCALE
PETCOKE GASIFICATION PROJECT
‘Bottom-of-the-barrel’ upgradation
Designed to convert low-value petroleum coke into high value
Syngas for further use as fuels and for hydrogen and chemicals production. Based on the ‘E-gas technology’ (of
CB&I), it has operational flexibility to use coal and petcoke as feedstock, providing competitive energy costs for the integrated refining complex, thus reducing volatility in earnings.

PETROCHEMICALS EXPANSION
Foundation for economic growth
RIL’s petrochemical products touch every facet of life through apparel, household goods, electronic goods, automobiles and food packaging.
RIL has undertaken the single largest expansion in the petrochemicals sector in the world– 65% overall volume expansion.
Creating a larger and more diversified portfolio of products.
Building one of the world’s largest ethylene crackers – securing the benefits of economies of scale and integration with refineries at
Jamnagar; this will enable the plant to be among the top decile in global cost competitiveness.

Creating sustainable cost advantage

RIL demonstrated its deep commitment to India’s growth by investing $ 16 billion in its integrated energy chain and India-centric consumer businesses in FY 2014-15.

To be among top 10 global petrochemicals producers

DIGITAL SERVICES
Transforming Communication
Work underway to provide endto-end solutions to address the complete digital value chain by setting up a world-class broadband network 4G initiative will build scale based on technological superiority, affordability and providing an unparalleled range of services
Leveraging the digital and information technologies to improve the quality of life of billionplus people in India.

Digital platform to empower India

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Annual Report 2014-15

Innovation not only unveils new opportunities in existing business verticals, but also helps create the roadmap to develop new business models. RIL is passionate to find new pathways to progress through consistent innovation.

INNOVATING

FOR THE FUTURE

CREATING AND NURTURING
INNOVATIVE IDEAS:

MISSION KURUKSHETRA (MK)
RIL recognises that every mind is creative. MK is a step towards democratising creativity and innovation within the organisation.

BEYONDERS PROGRAMME
This programme aims to create innovation leaders within RIL who can take on substantial innovation initiatives and introduce the ‘next big thing’ to the world.

INITIATIVES FOR
INNOVATIVE
AND SUSTAINABLE
PRODUCTS
3,00,000 sq. ft. of space, including 1,20,000 sq. ft. of laboratory space, with stateof-the-art R&D facilities in
Reliance Technology Group (RTG)
Laboratory at Navi Mumbai

D4 (DEFINE-DISCOVERDEVELOP-DEMONSTRATE)

The Reliance Innovation Council (RIC) sets an agenda to actively nurture innovation within
RIL in order to safeguard its standing as a unique corporate entity. The council consists of:
SHRI MUKESH D. AMBANI
Chairman and Managing
Director of RIL. He is a Member of Millennium Development
Goals (MDG) Advocacy Group
(MDG Advocate) constituted by United Nations (UN) and a Member of The Foundation Board of World
Economic Forum. He is also a member of the
Prime Minister’s Council on Trade and Industry,
Government of India and the Board of Governors of the National Council of Applied Economic
Research, New Delhi.

DR. RAGHUNATH A.
MASHELKAR
An eminent scientist and the President of Global
Research Alliance. Formerly, he was the Director General of the Council of Scientific and Industrial Research (CSIR) and also the
President of Indian National Science Academy
(INSA). For his various contributions to India, he has been honoured with some of the highest civilian honours bestowed in India including the prestigious Padma Vibhushan award.

PROF. JEAN-MARIE LEHN
A professor at the Collège de France in Paris, who was awarded the Nobel Prize in Chemistry in 1987 for his studies on the chemical basis of
‘molecular recognition’. Author of more than
800 scientific publications, he is a member of many academies and institutions.

DR. GEORGE M.
WHITESIDES
A Professor at Harvard
University and the world’s foremost chemist. He has held advisory positions on the National Research Council,
National Science Foundation and the Defense
Advanced Research Projects Agency (DARPA) of the Department of Defense, and is a member of the American Academy of Arts and Sciences,
National Academy of Sciences, National Academy of Engineering, and the American Philosophical
Society, among other organizations.

PROF. GARY HAMEL
One of the world’s foremost management experts and authors, he has been called “the world’s most influential business thinker” by
The Wall Street Journal and “the world’s leading expert on business strategy” by Fortune magazine. He also works with governments on matters of innovation policy, entrepreneurship and industrial competitiveness, and is a Fellow of the World Economic Forum.

DR. WILLIAM A. HASELTINE
He is the chairman of Haseltine Global Health LLC, a pharmaceutical company. He is also president of the Haseltine Foundation for Medical
Sciences and the Arts, a foundation that supports access to high-quality health for the poor and middle class of developing countries and that also fosters a dialog between sciences and the arts. He is also well-known for his pioneering work in cancer and HIV/AIDS.

PROF. ROBERT GRUBBS
He is a Victor and Elizabeth Atkins
Professor of Chemistry at California
Institute of Technology. He received the 2005 Nobel Prize in Chemistry, along with two others, for his work in the field of olefin metathesis.

LEADING EXPERT
ACCESS PROGRAMME (LEAP)

This programme aims to enable and empower middle management to ideate and innovate; hence challenging the assumption that innovation comes only from top leadership. LEAP was born with the aim of providing people at RIL with access to global thought and innovation leaders through interactive sessions.

GLOBAL INNOVATION HUB
In a move to spur innovation in industry, GenNext Ventures, a RIL sponsored
Venture Capital fund and Microsoft Ventures, have floated the Global Innovation
Hub. This globally competitive platform will support entrepreneurs shape their disruptive ideas in a resourceful setting, with help and guidance from leaders across industries and functionalities.

RTG has transitioned from a smart buyer of technology to a fast customizer and flagship developer of technology

Investments in R&D in various businesses, biofuels & bio-chemicals, breakthrough technologies and health, safety & environment Strong steps towards product stewardship in various businesses

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The Reliance story is a tribute to India’s entrepreneurial spirit. RIL has co-created growth and built a culture of excellence, that is inspired by the will of its people, and in turn, inspires holistic progress for all stakeholders.

INSPIRING

PROGRESS

INSPIRING PEOPLE

INSPIRING SUSTAINABILITY

RIL inspires its people to pursue goals in the face of challenges, and convert those challenges into opportunities.

Sustainability at RIL is a combination of small, but critical steps, which help redefine the future for businesses and for the nation. RIL’s sustainability initiatives are geared by the dream of its
Founder Chairman Late Shri Dhirubhai
Ambani, who envisioned India as a superpower in which the industry, government and society partner each other constructively.

RIL believes in creating a competency framework. This enables it to institutionalise the spirit of entrepreneurship and develop an ecosystem of collective ownership.
RIL employs over 24,000 people, each of whom are encouraged to lead the valuecreation journey, and become examples of inspired thinking. RIL’s employees are its partners in progress.
RIL continues to focus on implementing a robust Human Capital Management system to support its global, multi-geographical and diversified organisation on one common platform.
R-HR Transformation journey was initiated to revamp its people processes and implement world-class HR practices. At RIL, the leadership team inculcate a culture of inspiring people through six basic tenets:
Clear communication of vision and purpose
Motivate and inspire employees to succeed and aspire for the best globally
Develop capability through continuous learning
Show passion to excel
Effective teamwork, trust and collaboration
Integrate diverse perspectives

RIL’s CSR initiatives help elevate the quality of life of millions. It seeks to touch and transform lives by promoting healthcare, education, rural wellbeing and employment opportunities. RIL aims to continue its efforts to build on its tradition of social responsibility to empower people and deepen its social engagements. CSR Expenditure FY 2014-15

(` in crore)

Healthcare

Value Added is defined as the value created by the activities of a business and its employees.
Stakeholders

% ` in crore Stakeholders

% ` in crore

Contribution to National
Exchequer

46

33,322

Employee Benefits

5

3,686

Reinvested in the Group to maintain and develop operations

39

28,263

Providers of Equity
Capital

4

2,944

5

3,429

Contribution to Society

1

761

Providers of Debt

Total Value Created

` 72,405 crore

Education

Others

Environment

Total

608

VALUE ADDED STATEMENT FOR FY 2014-15 (Standalone)

Rural Transformation

126

22

4

1

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Dimensions of Sustainable Growth - 4Ps

DIMENSIONS OF SUSTAINABLE GROWTH - 4Ps
To ensure a robust sustainability practice that will help advance business priorities, drive innovation, and achieve a competitive advantage, RIL’s ’4P approach‘, along with key focus areas, delineate actionable points in order to percolate sustainability within every facet of the organisation.

PLANET

PEOPLE

1,63,500+ tonnes of soil has been conserved till date

2.5%

4.1%

Increase in renewable energy consumption

Increase in materials recycled

3.1%

11.7%

Reduction of direct
GHG emission

Reduction of air emission (SOx)

Saplings planted till date

R&D expenditure

42.2%

` 3,559 crore

Reduction in injury rate

Highest ever dividend payout

PROFITS

Reduction in injury rate by 42.2%
Reduction in lost day rate by 38.4%

17,31,000+ saplings have been planted till date

` 1,220 crore

PRODUCTS & PROCESSES

During FY 2014-15, RIL has undertaken numerous initiatives directed towards these four categories:

17,31,000+

1,533 students supported till date through Reliance
Dhirubhai Ambani Protsaham scheme
Disseminated 10,489 advisories to farmers and fisher folks through 54,59,347 calls during the year
Programmes conducted to enhance the skill and knowledge 1,87,415 small and marginal farmers during the year
Re-built Sir H.N. Reliance Foundation Hospital and Research Centre in Mumbai with state-of-theart facilities

4.5%

1.76 mn

4%

Reduction of air emission (NOx)

Man hours of training

Increase in the number of women employees

Rice Husk PVC composite boards for construction and furniture applications to save forest coverage, reducing the demand for wood
PE Flexible Silo Bags for food grain storage to reduce wastage
Recron Green Polyester Staple Fibre is ecofriendly fibre that addresses environmental concerns

Highest ever dividend payout of ` 3,559 crore
(including dividend distribution tax) recommended for this year
Largest ever capital expenditure programme to significantly enhance profits

R&D Expenditure: ` 1,220 crore

5%

Number of patents granted during the year: 22

PBDIT increased to
` 45,977 crore ($ 7.4 billion)

More than 800 professionals working in research and technology activities under Reliance Technology
Group

4.8%

Harnessing natural resources through ‘Algae to Biocrude’ efforts and ‘Jatropha based biodiesel’

PAT increased to
` 23,566 crore ($ 3.8 billion)
For more information, please refer ‘Financial Performance and
Review’ of Management’s Discussion and Analysis on page 49

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Strategic Framework

STRATEGIC FRAMEWORK

Adopting the Group Strategic Framework will ensure that the business model, business strategy and operating models comprehensively address each component of the Reliance Group
Strategy and remain bound by it.

Driving growth, value, innovation and transformation in society

STRATEGY

Reliance is pursuing its strategy to grow, by leveraging its existing know-how and asset base and investing in opportunities strategic to its existing businesses and those of the future. Reliance initially focuses on activities and investment in India to take advantage of the large domestic market, as it currently holds a leadership position in it.
It builds competencies that can be rolled out on a global scale. Reliance’s business creates value for its shareholders, employees, customers and society, and each new opportunity it pursues must meet these criteria or it does not invest in it.

Shareholder
Value

Reliance drives shareholder value through active portfolio management to continuously enhance the quality of its business portfolio, consistently deliver shareholder returns and maintain a focus on long-term growth potential.

Employee
Value

Reliance creates value for its employees, by ensuring their prosperity as the organisation grows.
Specifically, it creates employee value through continuous learning, structured career progression opportunities and an industry-leading employee value proposition.

Customer
Value

Reliance drives customer value through its product innovation for customers, application and service levels, ability to deliver a consistently high consumer experience and its overall reputation and brand promise in the markets it operates in.

Societal
Value

Society provides Reliance with a license to operate, and with this privilege comes a responsibility to create value. Reliance drives societal value through job creation, both directly and indirectly, social innovation through products and services and its respect for ecology and environment.

VALUE CREATED

Safe operations, digital technology, capital productivity, operational efficiency and ethics
Reliance’s Group Strategy is founded on five enablers. These include safe operations, digital technology, capital productivity, operational excellence and ethics.

FIVE ENABLERS

Safety and compliance are core values, and they help Reliance to preserve enterprise value, and provide a perpetual license securing its right to operate across India and globally.
Digital technologies underpin how Reliance operates its businesses. It is a pioneer in harnessing new digital technolgies and mobility initiatives that change how it conducts its business.
Capital is judiciously used, and achieving enhanced capital productivity is a priority across Reliance’s businesses to create competitive advantage.
Reliance remains committed to achieve the highest levels of operating efficiencies and effectiveness across all its activities, both customer facing and internal. A mindset for continuous improvement and processes forms the bedrock of all its operations.
Reliance is committed to conduct all its initiatives with the highest levels of integrity.

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Review of Operations

REVIEW OF OPERATIONS

REFINING AND MARKETING
RIL has world-scale competitive assets in the refining business. It runs one of the most energy efficient refineries globally with among the lowest operating cost per barrel, adjusted for complexity. Key intrinsic strengths of RIL’s refining business comprise:
Largest single site refinery - crude processing capacity of 1.24 MMBPD
Robust configuration - Nelson Complexity
Index of 12.7
Ability to sustain high operating rates state-of-the-art operating and maintenance practices Dedicated world-scale port facilities – strong crude and product freight economics
Flexibility to process wide range of challenging crudes – competitive feedstock costs Flexibility to swing product slate – agile and opportunistic response to volatile markets
Robust logistics set-up and proficient product placement team enables placement of large volumes of refined product globally

Read more about the Refining Operations on page 50

FEATURED ON THIS PAGE
Jamnagar refining complex and jetty facilities

ACHIEVEMENTS IN FY 2014-15

` 15,827 crore

13

67.9 MMT

Record EBIT for the year
($ 2.5 billion)

New crude grades processed

Crude processed at
110% utilisation rate

$ 32.5 billion

300+

Total exports of refined products

Fuel retail outlets operational

Petcoke gasification
Project under fast track implementation

GRM of
$ 8.6/bbl
Outperforming regional benchmark margins

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REVIEW OF OPERATIONS

PETROCHEMICALS
RIL is one of the top petrochemicals producers globally and the largest producer in India. RIL’s petrochemicals business portfolio consists of polymers, polyester, fibre intermediates, elastomers and chemicals. Integration from refinery to petrochemicals provides feedstock security, logistics advantage and economies of scale. RIL’s wide product portfolio, world-scale capacities, integrated operations and presence in growing domestic market supports high operating rates and provides earnings stability.

ACHIEVEMENTS IN FY 2014-15

22 MMT

Capacity: 40 KTPA

SBR plant, Hazira

PP sales in India – market share of 58%

26%

Securing feedstock

Share of specialty products in polyester

PBR plant, Hazira

>2.0 MMT

Overall share in Indian polymer market

37%

START-UP OF NEW FACILITIES

38%

Overall Petrochemicals production in India

Polyester filament market share increased with start-up of new
Silvassa facility

Implementing project to source
1.5 MTPA of ethane from US to feed crackers in India

Capacity: 150 KTPA

Creating new market New cracker to opportunities improve cost in India competitiveness PET plant, Dahej
Capacity: 650 KTPA

New product application development in Polymers and Polyesters

PTA plant, Dahej
Capacity: 1,150 KTPA

Read more about the Petrochemicals Operations on page 55
TOP:
Robotic packaging in POY, Silvassa
BOTTOM, LEFT TO RIGHT:
PTA plant, Dahej
Silvassa Polyester plant, Packaging section
Construction site, ROGC

Refinery off-gas cracker and related downstream projects under implementation

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REVIEW OF OPERATIONS

OIL & GAS
RIL’s upstream portfolio includes operations in conventional upstream, which consists of onland, shallow water and deepwater acreages, Coal Bed Methane (CBM) and Shale
Gas. This places RIL in an advantageous position of having strong offshore (deepwater) capabilities combined with the knowledge of operations in unconventional areas, such as CBM and Shale Gas.
RIL’s assets include KG-D6, Panna-Mukta,
Tapti and two CBM blocks in addition to several domestic and international blocks.
Additionally, RIL has three joint ventures in
North America – one in the Eagle Ford play and two in Marcellus play.

KG-D6 JV PRODUCTION
157.6 BCF

2.28 MMBBL

Gas

ACHIEVEMENTS IN FY 2014-15

142 BCFe

195 BCFe

11%

RIL’s share of production in India

RIL’s share of production
(CY2014) in US shale operations

Growth in reserve accretion in US shale operations with proved reserves at 2.95 TCFe as at
December 2014

17 million acres

Two booster compressors Oil and condensates

PMT JV PRODUCTION
85 BCF

7.45 MMBBL

Gas

Oil and condensates

Read more about the Oil & Gas Operations on page 61
TOP:
Control Riser Platform (CRP)
BOTTOM, LEFT TO RIGHT:
US shale operation in Marcellus play
Off-shore control room
Control Riser Platform (CRP) at KG-D6 off-shore

Total JV acreage

Commissioned in KG-D6 block on-shore terminal

CBM block
Development activities in advanced stage of mechanical completion Shahdol-Phulpur gas pipeline project
Production sharing contract
Construction work in progress

Signed between RIL and Myanma Oil & Gas Enterprise
(MOGE) for two offshore blocks (M17 and M18) in the
Tanintharyi basin of Myanmar

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REVIEW OF OPERATIONS

RETAIL
Reliance Retail addresses India’s growing consumption requirements by operating multiple retail formats that offer unmatched choices in products and services in addition to a superior value proposition. It is India’s largest retailer by revenues. Its operating model is based on keen insights into customer needs, while leveraging robust technology platform, business processes and supply chain.
During the year, RIL sustained the growth momentum in its retail business. The introduction of new delivery channels allowed it to further enhance consumer service and experience. ACHIEVEMENTS IN FY 2014-15

` 784 crore

Total Revenue

India’s largest cash & carry chain

` 17,640 crore

EBITDA

21% y-o-y

116% y-o-y

2,621 stores

India’s largest mobile phone retail chain
Reliance Digital - 1,100+ stores

Read more about the Retail Operations on page 68
TOP:
Democratising fashion
BOTTOM, LEFT TO RIGHT:
Reliance Mart
Reliance Market
Reliance Digital

Launched Reliance
Fresh Direct

Net addition to network

Reliance Trends - 200+ stores selling 1,50,000 garments per day

Retail space

930 stores

India’s largest fashion destination

12.5+ mn sq. ft.

Operated across 200 cities

Reliance Market - 43 stores with
1.5 million registered members

Online grocery retail channel

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REVIEW OF OPERATIONS

MEDIA AND ENTERTAINMENT
During the year, Independent Media Trust
(IMT), of which RIL is the sole beneficiary, acquired the control of Network18 Media &
Investments Limited (Network18), including its subsidiary TV18 Broadcast Limited (TV18). With the completion of this transaction, IMT and RIL became promoters of Network18 and TV18.
Network18 has interests in television, digital content, filmed entertainment, digital commerce, magazines, mobile content and allied businesses.

ACHIEVEMENTS IN FY 2014-15
^

No.1 position

CNBC-TV18 and CNBC Awaaz maintained
No.1^ position in their respective genres

maintained by CNBC-TV18, CNBC
Awaaz in their respective genres

CNN-IBN continued to be a leading player in English General News

1.1+ billion

General Entertainment Channel Colors was the No.1 player ^^ in weekend primetime slots throughout the year

*

pageviews attracted by IBNlive,
Firstpost and News18.com

~225 cities serviced by BookMyShow across
2,600 screens
^ Source: TAM| All India| CS AB Males 25+| Wk 14’14 to Wk 13’15 (till 28th Mar’15)| All days, 24 hours), (Source: TAM| HSM| CS AB Males 25+| Wk 14’ 14 to Wk 13’15| All days, 24 hours| Market shares basis GTVTs).
^^ Source: TAM| CS 4+|HSM |Prime Time: 1900-2400|FY15 Q1, Q2, Q3 &. Q4.
+ Source: TAM| All India| CS 4+| 1st Apr’14 to 28th Mar’15| All days, 24 hours| Avg. Monthly Reach.
* Independent Industry data sources

Read more about our M&E Operations on page 74
TOP: The business specialists at India’s No 1 business news channel, CNBC-TV18
BOTTOM, LEFT TO RIGHT:
Colors, entertaining a billion Indians
CNN-IBN ‘Indian of The Year 2014’, Lifetime Achievement Award -2014-ISRO scientists
Poster of National Award winning movie ‘Queen’
ETV Ahmedabad studio

MTV India is a top destination across platforms for youth in the country
ETV News and ETV Entertainment sustained their growth momentum, reaching
58 million+ and 66 million+ average monthly viewers respectively

Moneycontrol.com continues to be one of Asia’s leading financial news and services portal
News properties IBNlive, Firstpost and
News18.com, together attracted over
1.1 billion pageviews*
HomeShop18 reached close to 54 million+ viewers on TV, close to 6 million* average monthly users on web and had more than
2 million app downloads
Viacom18 Motion Pictures produced and released films ‘Queen’, ‘Mary Kom’ and
‘Manjunath’, which were well received

IBN Lokmat bagged 4 prestigious Ramnath
Goenka ‘Excellence in Journalism’ Awards
History TV18 continued to be amongst the leading players in the Factual Entertainment genre BookMyShow, India’s largest entertainment ticketing company serviced ~225 cities and
2,600 screens in India
Network18’s Publishing division (‘Overdrive’,
‘Better Photography’ and ‘Better Interiors’) reached out to over 1 million readers on a monthly basis across platforms

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Reliance Foundation

RELIANCE FOUNDATION

Reliance Foundation provides technical knowhow and resources to enhance livelihood opportunities of farmers and fisherfolk. The Foundation reached out to over 94,000 households involved in agriculture and marine fishery in more than 5,500 villages. It has supplemented the nutritional intake of rural households through small kitchen gardens that provide vegetables and fruits to more than
26,600 families.

Reliance Foundation operates across:

Rural transformation Education

Health

Urban renewal Art, culture and heritage

94,000+

10,000+

households, across 5,500+ villages, benefitted through
Reliance Foundation’s initiatives

Students benefitted from
The Dhirubhai Ambani
Scholarship program

14,000+

70,000+

visually challenged people helped to improve their vision through free corneal transplants

underprivileged children positively influenced through Education for All initiative 447 lakh m3
Rain water harvested stored in water harvesting structures

TOP, LEFT TO RIGHT:
Medical Care to the underprivileged
Positively influencing the lives of underprivileged children
Supplementing nutritional intake of rural households
BOTTOM, LEFT TO RIGHT:
Enhancing livelihoods
Encouraging sports for development
Creating critical sources of irrigation

store 447 lakh cubic metres of rain water.

Sir H.N. Reliance Foundation Hospital and Research Centre has been rebuilt and launched to provide world-class tertiary care.

Water harvesting, structures serving as critical sources of irrigation for communities living in dry and rain-fed areas, were created to harvest and

The Foundation’s health initiatives have reached out to over 4 lakh marginalised and urban poor in
Mumbai within three years of operations. Reliance Foundation Drishti has helped improve the vision of more than 14,000 people through free corneal transplants. The initiative reaches out to the visually-impaired

through a fortnightly braille newspaper across India and 17 other countries. The Dhirubhai Ambani Scholarship programme supports meritorious students across India to pursue higher education. Over 10,000 students have benefited from the programme; among these students about 20% are specially-abled. Reliance Foundation Jr. NBA is an initiative to build a holistic sports culture among children through basketball. It has engaged with more than 1 million children through the comprehensive school-based youth basketball programme.

The Foundation’s Education for
All initiative, in partnership with prominent NGOs working in the field of education, has reached out to over
70,000 underprivileged children and positively influenced their lives.
Reliance Foundation was among the first organisations to reach out to the affected people with relief and medical care when disasters struck
Andhra Pradesh, Jammu and Kashmir and Uttarakhand.

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Awards and Recognitions

|

Company Information

AWARDS AND RECOGNITIONS
BOARD OF DIRECTORS

LEADERSHIP

SUSTAINABILITY

BOARD COMMITTEES

Chairman and Managing Director
Mukesh D. Ambani

Audit Committee
Yogendra P. Trivedi (Chairman)
Dr. Raghunath A. Mashelkar
Adil Zainulbhai

Executive Directors
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil

Non Executive Directors
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Nita M. Ambani

Chief Financial Officer
Alok Agarwal

Group Company Secretary and Chief Compliance
Officer
K. Sethuraman

Joint Chief Financial Officer
Srikanth Venkatachari

RIL’s Chairman and Managing Director Shri Mukesh D. Ambani was conferred the Honorary Doctor of Science degree by the
Institute of Chemical Technology (ICT), Mumbai

Won the ‘CII-ITC (Confederation of Indian
Industry) Sustainability Awards 2014’

Auditors
Chaturvedi & Shah
Deloitte Haskins & Sells LLP
Rajendra & Co

Solicitors & Advocates
Kanga & Co

HEALTH, SAFETY AND
ENVIRONMENT
Excellent Energy Efficient Unit Award

Awarded as the ‘HSE Company of the Year’ at the Asia Oil & Gas Awards 2015, organised by
Oliver Kinross

Allahabad Bank

Citibank N.A

ICICI Bank Limited

State Bank of India

Andhra Bank

IDBI Bank Limited

State Bank of Patiala

Bank of America

Credit Agricole Corporate and
Investment Bank

Indian Bank

Syndicate Bank

Bank of Baroda

Corporation Bank

Indian Overseas Bank

The Royal Bank of Scotland

Bank of India

Deutsche Bank

Oriental Bank of Commerce

Union Bank of India

Bank of Maharashtra

The Hong Kong and Shanghai
Banking Corporation Limited

Punjab National Bank

Vijaya Bank

Canara Bank

Won the 15th annual ‘Greentech Environment
Award’ 2014

Dahej
P. O. Dahej,
Taluka: Vagra,
Dist. Bharuch – 392 130,
Gujarat, India
Gadimoga
Tallarevu Mandal,
East Godavari District,
Gadimoga – 533 463,
Andhra Pradesh, India

Golden Europe Award for Quality & Commercial Prestige 2014

QUALITY
Received the esteemed Golden Europe Award for Quality &
Commercial Prestige at the convention organised by Otherways
Management & Consulting Association (OMAC)
Read more about Awards and Recognitions on page 92

HDFC Bank Limited

Central Bank of India

Awarded the ‘Corporate Social Responsibility
Company of the Year’ for the second consecutive year in the Asia Oil & Gas Awards
2015, organised by Oliver Kinross
Won the ‘Best Corporate Social Responsibility
Practices’ Award and the ‘Best use of
Corporate Social Responsibility practices in
Manufacturing’ Award at the 3rd Global CSR
Excellence and Leadership Conference of the
World CSR Congress

Health, Safety and Environment
Committee
Hital R. Meswani (Chairman)
Dr. Dharam Vir Kapur
P.M.S. Prasad
Pawan Kumar Kapil

BANKERS

Awarded the ‘Golden Peacock Environment
Management Award’ for the year 2014

CSR

Human Resources,
Nomination and
Remuneration Committee
Adil Zainulbhai (Chairman)
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Dr. Raghunath A. Mashelkar

Finance Committee
Mukesh D. Ambani (Chairman)
Nikhil R. Meswani
Hital R. Meswani

Risk Management Committee
Adil Zainulbhai (Chairman)
Hital R. Meswani
P.M.S. Prasad
Alok Agarwal
Srikanth Venkatachari

ENERGY AND WATER
CONSERVATION/EFFICIENCY
Awarded ‘Excellent Energy Efficient Unit
Award’ at the CII National Energy Efficiency
Summit

Stakeholders’ Relationship
Committee
Yogendra P. Trivedi (Chairman)
Nikhil R. Meswani
Hital R. Meswani
Prof. Ashok Misra

Corporate Social Responsibility and Governance Committee
Yogendra P. Trivedi (Chairman)
Nikhil R. Meswani
Dr. Dharam Vir Kapur
Dr. Raghunath A. Mashelkar

Standard Chartered Bank
State Bank of Hyderabad

MAJOR PLANT LOCATIONS
Hazira
Village Mora, P.O. Bhatha,
Surat-Hazira Road,
Surat - 394 510,
Gujarat, India
Jamnagar
Village Meghpar / Padana,
Taluka Lalpur,
Jamnagar – 361 280,
Gujarat, India

REGISTERED OFFICE
3rd Floor, Maker Chambers IV,
222, Nariman Point, Mumbai 400 021, India
Tel: +91 22 2278 5000, Fax: +91 22 2278 5111 e-mail: investor_relations@ril.com
Website: www.ril.com

Jamnagar SEZ Unit
Village Meghpar / Padana,
Taluka Lalpur,
Jamnagar - 361 280,
Gujarat, India
Nagothane
P. O. Petrochemicals Township,
Nagothane - 402 125,
Roha Taluka, Dist. Raigad,
Maharashtra, India

Patalganga
B-1 to B-5 & A3,
MIDC Industrial Area, P. O. Rasayani,
Patalganga - 410 220,
Dist. Raigad, Maharashtra, India
Vadodara
P. O. Petrochemicals,
Vadodara - 391 346,
Gujarat, India

REGISTRARS & TRANSFER AGENTS
Karvy Computershare Private Limited,
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Financial District, Nanakramguda,
Hyderabad 500 032, India Tel: +91 40 6716 1700
Toll Free No.: 1800 425 8998 Fax: +91 40 2311 4087 e-mail: rilinvestor@karvy.com Website : www.karvy.com

41st Annual General Meeting on Friday, June 12, 2015 at 11.00 a.m. at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020.

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MAJOR PRODUCTS AND BRANDS
Business/Brand

Product / Service

Brand Logo

End Uses

REFINING AND MARKETING
Refining
Reliance Gas

Liquefied Petroleum Gas (LPG)

Domestic, commercial and industrial fuel

Propylene

Feedstock for polypropylene

Naphtha

Feedstock for petrochemicals such as ethylene, propylene & fertilisers, etc. and as fuel in power plants

Gasoline

GAPCO

Transport fuel

Superior Kerosene Oil
High Speed Diesel
Sulphur
Petroleum Coke
Alkylate

Domestic fuel
Transport fuel
Feedstock for fertilisers and pharmaceuticals
Fuel for power plants and cement plants
High Octane blend stock for gasoline

Petroleum Retail

Retail distribution of fuels

Petroleum Retail
Transportation fuels
Reliance
Petroleum
Retail
Jet / Aviation Turbine Fuel
Reliance
Aviation

Retail distribution of fuels

Aviation fuel

Auto LPG

Auto LPG

Auto fuel outlet

Trans Connect

Fleet Management Services

Fleet Management Solutions

A1 Plaza

Highway Hospitality Services

Highway food plaza

R-Care

Vehicle care services

Vehicle service, repair and preventive maintenance

Qwik Mart

Convenience shopping

Shopping of beverages, snacks, gifts on highways

Refresh

Foods

Passengers amenities/food court on highways

Relstar

Lubricants

Lubricants

PETROCHEMICALS
Polymers
Repol

Polypropylene (PP)

Woven sacks for packaging of cement, food-grain, sugar, fertiliser; leno bags for packaging of fruits & vegetables, TQ & BOPP films for packaging of textiles, films and containers for processed food, FMCG, office stationery; components for automobile and consumer durables, moulded furniture, luggage, housewares, geo-textiles & fibres for non-woven textiles and pipes.

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Major Products & Brands

Business/Brand

Product / Service

Polymers
Relene

Polyethylene (HDPE, LLDPE & LDPE)

Ethylene Vinyl Acetate Copolymer
(EVA)

Brand Logo

End Uses
Woven sacks, raschel bags for packaging of fruits
& vegetables, containers for packaging of edible oil, processed food, FMCG, lubricants, detergents, chemicals, pesticides; industrial crates & containers, carrier bags, housewares, ropes & twines; pipes for water supply, irrigation, process industry & telecom; films for packaging of milk, edible oil, salt, processed food, roto-moulded containers for storage of water, chemicals storage and general purpose tanks, protective films and pipes for agriculture, cable sheathing, lids & caps and master batches.
Footwear

Reon

Polyvinyl Chloride (PVC)

Pipes & fittings; door & window profiles, insulation
& sheathing for wire & cables, rigid bottles & containers for packaging applications, footwear, flooring, partitions, roofing, I.V. fluid & blood bags and calendered films for pharmaceutical applications. Relpipe

Poly-Olefin HDPE and PPR pipes

Irrigation, water supply projects, sewerage and drainage, mines, coal fields, industrial water/fluids/ effluents transportation, gas distribution network, telecom cable ducts and micro ducts for FTTx, plumbing & construction.

Relflex™
Elastomers

Synthetic Rubbers

Tyres, Footwear soles & heels, belts, hoses etc.

Relflex™
Cisamer PBR

Polybutadiene Rubber (PBR)

Automotive Tyres, Tyre treads, Cycle Tyres, Conveyor
& V-Belts, Sports Goods, Dock Fenders, HIPS etc.

Relflex™
Stylamer SBR
Chemicals

Styrene Butadiene Rubber (SBR)

Tyres, Footwear, Conveyor belts, Hoses, Mechanical rubber goods etc.

Relab

Linear Alkyl Benzene (LAB)

Detergents

Polyester & Fibre Intermediates
Paraxylene (PX)

Raw material for PTA

Purified Terephthalic Acid (PTA)

Raw material for polyester

Mono Ethylene Glycol (MEG)

Raw material for polyester

Recron®

Polyester Staple Fibres, Polyester
Filament Yarns, Speciality Polyesters

Apparel, Home textiles, Technical textiles & Nonwovens

Recron® IDY

Polyester high-tenacity industrial yarns Conveyor belts, ropes, geo-grids, lashings, slings, industrial fabrics etc.

Recron® SHT

Polyester Super High Tenacity
Fibres

Hi-Strength, Low-shrinkage Sewing threads for apparel, home and industrial applications

seat-belts,

35

36

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

MAJOR PRODUCTS AND BRANDS (CONTINUED)
Business/Brand

Product / Service

Brand Logo

End Uses

Polyester & Fibre Intermediates
Recron®
Fancyy

Innovative Polyester Filament yarns

Value-added fine quality fashion fabrics with unique weave patterns, textures and hand-feel.

Recron®
Stretch

Stretch yarns for comfortable fit and freedom of movement

Blouse material, denim, shirting, suiting, dress material, T-shirt, sportswear, swimwear, medical bandages & diapers

Recron®
Cotluk

Cotton Look, Cotton Feel Yarns

Dress material, shirting, suiting, furnishing fabric, curtain & bed sheet

Recron®
Dyefast

Can dye at boiling water temperature with high colour fastness Ladies outerwear, feather yarn for knitted cardigan, decorative fabric & home furnishing

Recron®
Superblack

Dope dyed black with high consistency in shade

Apparel, automotive, non-woven & interlining

Recron®
Superdye

Bright, brilliant colours and soft feel, low pill

Woven & knitted apparel, furnishing & home textile

Recron®
Kooltex

Moisture management yarns

Active sports and high performance wear

Recron®
Fibrefill

Hollow fibres with high bounce and resilience Pillows, cushions, quilts, mattresses, furniture, toys
& non-wovens

Recron® 3D
Conjugate

Virgin superwhite fibres with a unique spiral structure

Sleep and comfort products, Furniture, Toys &
Beddings

Recron® 3S

Secondary Reinforcement Products

Construction industry (concrete/mortar), cement
(sheet & pipe), paper industry (conventional & speciality), battery industry, wetlaid industry (wall papers, filtration, wipes & hygiene products) &
Asbestos replacement

Recron®
Certified

Quality Certified Sleep Products

Pillows, cushions, blankets & quilts

Recron® Low
Pill

Polyester Tow & Staple Fibre with unique low pill properties

High-end worsted suitings, upholstery fabrics & socks Recron®
FeelFresh

Anti microbial fibres & yarns

Active sportswear, Intimate apparel, socks, home furnishings & garments used in healthcare industry

Recron®
Micrelle

Bi-component filament yarns

Super soft and ultra comfortable fabrics

Recron®
Recrobulk

Hi-bulk fibres for soft-feel & warmth Sweaters, pullovers, cardigans, shawls & jackets

Recron®
Green

Eco-friendly fibres made from
100% post-consumer polyester waste Apparel & home textiles

Recron®
Spunlace

Speciality polyester fibres

High quality non-woven products for the healthcare
& hygiene industry

Recron®
RecoSilk

Speciality Polyester Filament Yarns

Recosilk

Ideal for dress materials, velvet, sarees, embroidery threads with a silken shimmer and in swathes of colour. 02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Major Products & Brands

Business/Brand

Product / Service

Brand Logo

End Uses

Polyester & Fibre Intermediates
Recron® FR

Flame retardant Fibres & Yarns

Institutional textiles for hospitality, entertainment, transport, safety etc. Also used in home textiles, fill
& comfort products.

Recron®
Duratarp

Polyester Fibres with increased abrasion resistance for better water proof, tear proof and fade- proof qualities Tarpaulin, Tents & Awnings

Recron®
Safeband

Structurally modified polyester fibre with antimicrobial and antifungal properties

Crepe, Rolled Bandages & Surgical Dressings

Relpet®

Polyethylene Terephthalate (PET)

Packaging for bottled water, beverages, confectionary, pharmaceutical, agro-chemical and food products

OIL AND GAS EXPLORATION AND PRODUCTION
Crude Oil and Natural Gas

Refining, power, fertilisers, petrochemicals and other industries

Reliance Retail

Reliance Retail

Organised retail

Reliance Fresh

Food & Grocery
Specialty Store

Fresh vegetables, grocery, general and convenience merchandise RETAIL

Reliance Super Mini Hypermarket

Grocery, clothing, leisure, beauty and style, electronics and home merchandise

Reliance Mart

Hypermarket

Grocery, clothing, leisure, beauty and style, electronics, home merchandise, furniture and jewellery A wholesale store for business & bulk needs

Reliance
Market

Wholesale Store

Reliance
Digital

Electronics Specialty Store

Computers, mobiles, merchandise Reliance
Digital Xpress

Digital Technology Specialty Store

Solutions for the emerging entertainment and technology needs of Smart phones, ultra books, HD speakers, music players, smart TVs.

Reliance
Digital Xpress
Mini

Specialty Store for mobility & communication Products and Services relating to mobility needs through smart phones, tablets, accessories, peripherals iStore

Exclusive Apple Store

Range of Apple products like IPod and IMac

Reliance Resq

Digital Service Center

Services (Guidance, Installation, Maintenance &
Repair) for Digital products

Reliance
Jewels

Jewellery Specialty Store

Fine jewellery

Reliance
Trends

Apparel Specialty

Men, ladies, children clothing and accessories

Reliance
Footprint

Footwear Specialty Store

Men, ladies, children footwear, sports, handbags and accessories

entertainment,

gaming

37

38

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

MAJOR PRODUCTS AND BRANDS (CONTINUED)
Business/Brand

Product / Service

Brand Logo

End Uses

RETAIL
Ermenegildo
Zegna

Italian Luxury Men’s Clothing

Apparel, Accessories and Footwear for Men

Paul & Shark

Italian luxury sportswear brand

Apparel, Accessories and Footwear for Men

Stuart
Weitzman

Luxury Footwear

Accessories and Footwear for Women

Pink

British Shirt Authority

Apparel and Accessories for Men

Brooks
Brothers

American icon that has redefined
& shaped classic American style for nearly two centuries

Apparel and Accessories for Men

Diesel

Iconic Italian Lifestyle Brand

Apparel, Accessories and Footwear

Kenneth Cole

Urban fashion & Lifestyle brand that exudes metropolitan lifestyle of New York city

Apparel, Accessories and Footwear

Superdry

Fashion brand that fuses design influences from Japanese graphics and vintage Americana, with the values of British Tailoring

Apparel, Accessories and Footwear

Dune

Distinctive Fashion footwear &
Accessories

Accessories and Footwear for Men and Women

Steve Madden

Fashion forward Footwear &
Accessories Brand

Accessories and Footwear for Men and Women

BCBG Max
Azria

Contemporary women’s clothing brand Apparel, Accessories and Footwear

Juicy Couture

Casual luxury lifestyle brand

Apparel, Accessories and Footwear

Hamleys

The finest toy shop in the world

Toys

Vision Express

Optical Specialty Store

Spectacles, Sunglasses, Contact Lenses

Marks &
Spencer

International Apparel, Accessories &
Home Products Store

Apparel for Women, Men and Children, Lingerie,
Beauty and Home Décor

Payless

Affordable Fashion Footwear
Specialty Store

Mens, ladies, kids and sports footwear, handbags and accessories

Quiksilver

Quiksilver is a premium youth lifestyle and culture clothing brand representing action sports

Apparel, Accessories, Footwear, Skateboards &
Surfboards

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Major Products & Brands

Business/Brand

Product / Service

Brand Logo

End Uses

RETAIL
Roxy

Roxy is a global lifestyle brand, offering products for every aspect of an active girl’s life, the key ingredient of the products being the inimitable Roxy spirit. “Daring, confident, naturally beautiful, fun, alive” Apparel, Accessories, Swimwear, Footwear for girls

DC

Founded by Ken Block and Damon
Way in 1993, DC is a leader in performance skateboarding shoes and renowned action sports and stands as a global brand whose product line has expanded to include men’s, women’s and kids’ skateboarding and lifestyle shoes, apparel, snowboards, snowboard boots, outerwear, and accessories. GAS is an Italian clothing brand offering quality products for intelligent, aware consumers, with an international, cosmopolitan attitude. Global apparel brands by blending surf, sport, urban and street into a contemporary fashion brand with a broad and credible appeal

Apparel, Accessories, Footwear, Skateboards

Umbro

Umbro makes football tailoring

Men’s sports Footwear, Apparel and Accessories

Cannon

The #1 most recognized home brand with a powerful heritage

Home Furnishings

Ed Hardy

Alternative lifestyle fashion brand that celebrates the classic American tattoo as an art form
Known for the classic trench coat and its iconic reputation

Apparel, Accessories, Footwear for Men and Women

Fun & Flirty American Lifestyle
Brand

Apparel, Accessories, Footwear for Girls

Vimal

Suitings, Shirtings, Readymade
Garments

Fabrics, suits, jackets, shirts & trousers

Vimal Gifting

Ready-to-stitch, take away fabric in gift packs

Fabrics

V2

Ready-to-stitch,
Take away fabric

Fabrics

GAS

Mossimo

London Fog
Candie’s

Apparel, Accessories, Footwear for men & women

Apparel, Accessories, Footwear for Men and Women

Apparel, Accessories, Footwear for Men and Women

TEXTILES

Jio

Jio Messaging

Enhanced messaging, Voice & Video calling application

OTT Instant messaging and calling

39

40

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

MAJOR PRODUCTS AND BRANDS (CONTINUED)
Business/Brand

Product / Service

Brand Logo

End Uses

MEDIA AND ENTERTAINMENT
TV Channels

CNBC TV18

English Business News Channel

English Business news

CNBC Awaaz

Hindi News Channel

Hindi Business news

CNBC Bajar

Gujarati News Channel

Gujarati Business news

CNN IBN

English General News Channel

English language news and current affairs

IBN 7

Hindi General News Channel

Hindi language news channel

News18 India

English General News Channel

News from India for Indian diasporas outside

IBN Lokmat

Marathi News Channel

National and International news for Marathi viewers

ETV Urdu

Regional News Channel

Urdu news channel

ETV Rajasthan

Regional News Channel

Rajasthani news channel

ETV
Bihar
Jharkhand

Regional News Channel

Regional news for Bihar and Jharkhand

ETV
Uttar Pradesh
Uttarakhand

Regional News Channel

Regional news for Uttar Pradesh and Uttarakhand

ETV
Madhya
Pradesh
Chhattisgarh

Regional News Channel

Regional news for Madhya Pradesh and Chhattisgarh

ETV News
Gujarati

Regional News Channel

Gujarati news channel

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Major Products & Brands

Business/Brand

Product / Service

Brand Logo

End Uses

TV Channels

ETV News
Kannada

Regional News Channel

Kannada news channel

ETV News
Bangla

Regional News Channel

Bangla news channel

ETV Haryana
Himachal
Pradesh

Regional News Channel

Regional news for Haryana and Himachal Pradesh

Colors

Hindi general Entertainment
Channel

Hindi mass entertainment channel

Rishtey

Hindi general Entertainment
Channel

Hindi mass entertainment channel

MTV India

Music Channel

Music destination for the youth

Vh1

English Music and Lifestyle Channel

English music destination for the youth

Comedy
Central

English Entertainment Channel

English entertainment viewership Nickelodeon

Kids Channel

Comedy destination for kids

Sonic

Kids Channel

Action and adventure entertainment for kids and young adults

Nickelodeon
Junior

Kids Channel

Entertainment aimed at pre-school kids

Colors Marathi

Regional Entertainment Channel

Marathi entertainment channel

Colors
Kannada

Regional Entertainment Channel

Kannada entertainment channel

for

inclusive

family

41

42

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

MAJOR PRODUCTS AND BRANDS (CONTINUED)
Business/Brand

Product / Service

Brand Logo

End Uses

TV Channels

Colors Bangla

Regional Entertainment Channel

Colors Gujarati Regional Entertainment Channel

Bangla entertainment channel

Gujarati entertainment channel

Colors Odia

Regional Entertainment Channel

Oriya entertainment channel

History TV18

Infotainment Channel

Factual Entertainment channel

Filmed Entertainment

Viacom18
Motion
Pictures

Filmed Entertainment

Acquisition, production, syndication, marketing and distribution of full length feature films within
India and distribution of Indian films in several international markets

Content Asset Monetization
Multi-platform ‘Content Asset
Monetization’ entity

International Channel distribution, advertising sales on international Channels and content Syndication

Moneycontrol

Financial news and services portal

Comprehensive financial information, news and indepth analysis across asset classes

IBNLive

News and entertainment portal

Real time coverage, sports updates, entertainment buzz, anchor blogs & chats and Live TV for CNN-IBN,
IBN7 and IBN-Lokmat

Firstpost

Online news and views website

Digital newsroom powered by expert writer-editors across the country and the globe

News18.com

Regional news website

Web, mobile & tablet service with focus on news at the state & city level

In.com

News and entertainment portal

Content & videos of Network18 entertainment channels and websites and popular third party websites Burrp

Lifestyle portal

Social lifestyle portal for metropolitan Indian market

IndiaCast

Digital Content

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Major Products & Brands

Business/Brand

Product / Service

Brand Logo

End Uses

Digital Commerce

HomeShop18

Retail platform

Integrated virtual shopping on Internet, Television and Mobile

BookmyShow

Online ticket booking platform

Online ticket booking for movies, plays, sporting events and shows

Publishing Business

Forbes India

Business Magazine

Lifestyle magazine targeting India’s affluent and influential individuals

Better
Photography

Photography Magazine

Magazine for photography enthusiasts

Better
Interiors

Interiors Magazine

Magazine for interiors ideas and design

Overdrive

Auto Publication

Publication for auto enthusiasts and users

Topper
Learning

Education

Educational content for K-12 students

Colosceum

Production House

Content producers specializing in TV and filmed entertainment Allied Business

COLOSCEUM

M E D I A P R I V AT E LT D

Capital 18

Investment

Investment arm of Network18

43

44

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

PRODUCT FLOW CHART

Styrene

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Product Flow Chart

| Financial Highlights

| Key Indicators

45

FINANCIAL HIGHLIGHTS – RIL STANDALONE
` in crore
$ Mn

2014-15

13 -14

12 -13

11-12

10 -11

09 -10

08 - 09

07- 08

06 - 07

05 - 06

Revenue From Operations

54,530 3,40,814 4,01,302 3,71,119 3,39,792 2,58,651 2,00,400 1,46,328 1,39,269 1,18,354

89,124

Total Income

55,926 3,49,535 4,10,238 3,79,117 3,45,984 2,61,703 2,02,860 1,48,388 1,44,898 1,18,832

89,807

Earnings Before Depreciation,
Finance Cost and Tax Expenses
(EBDIT)

6,452

40,323

39,813

38,785

39,811

41,178

33,041

25,374

Depreciation and Amortisation

28,935

20,525

14,982

1,358

8,488

8,789

9,465

11,394

13,608

10,497

5,195

4,847

4,815

3,401

Exceptional Items

-

-

-

-

-

-

-

(370)

4,733

-

-

Profit For the Year

3,635

22,719

21,984

21,003

20,040

20,286

16,236

15,309

19,458

11,943

9,069

100

95

90

85

80

70

130

130

110

100

Equity Dividend %*
Dividend Payout

471

2,944

2,793

2,643

2,531

2,385

2,084

1,897

1,631

1,440

1,393

Equity Share Capital

518

3,236

3,232

3,229

3,271

3,273

3,270

1,574

1,454

1,393

1,393

Equity Share Suspense Account

-

-

-

-

-

-

-

69

-

60

-

Equity Share Warrants

-

-

-

-

-

-

-

-

1,682

-

-

Reserves and Surplus

34,068 2,12,923 1,93,842 1,76,766 1,62,825 1,48,267 1,33,901 1,24,730

78,313

62,514

48,411

Net Worth

34,585 2,16,159 1,97,074 1,79,995 1,66,096 1,51,540 1,37,171 1,26,373

81,449

63,967

49,804

Gross Fixed Assets

49,890 3,11,815 2,64,281 2,32,270 2,05,493 2,21,252 2,28,004 2,18,673 1,27,235 1,07,061

91,928

Net Fixed Assets

30,451 1,90,316 1,51,122 1,28,864 1,21,477 1,55,526 1,65,399 1,69,387

71,189

62,675

Total Assets

63,646 3,97,785 3,67,583 3,18,511 2,95,140 2,84,719 2,51,006 2,45,706 1,49,792 1,17,353

93,095

Market Capitalisation

42,696 2,66,847 3,00,405 2,49,802 2,44,757 3,42,984 3,51,320 2,39,721 3,29,179 1,98,905 1,10,958

Number of Employees
Contribution to National
Exchequer

84,889

24,930
5,332

23,853

23,519

23,166

22,661

23,365

24,679

25,487

24,696

12,540

33,322

31,374

28,950

28,197

28,719

17,972

11,574

13,696

15,344

15,950

13-14

12-13

11-12

10-11

09-10

08-09

07-08

06-07

05-06

62.0

49.7

49.7

105.3

82.2

65.1

KEY INDICATORS
$ 2014-15
1.1

70.2

68.0

64.8

61.2

Turnover Per Share - (`)

16.9

1,053.3

1,241.7

1,149.5

1,037.8

790.5

612.9

464.9

958.1

814.2

639.6

Book Value Per Share - (`)

10.7

668.0

609.8

557.5

507.3

463.2

419.5

401.5

560.3

440.0

357.4

Earnings Per Share - (`)
[excluding Exceptional item]*

Debt : Equity Ratio

0.45:1

0.45:1

0.40:1

0.41:1

0.44:1

0.46:1

0.63:1

0.45:1

0.44:1

0.44:1

11.8

11.8

9.9

10.5

11.7

15.9

16.5

17.3

20.8

17.3

16.8

6.7

6.7

5.5

5.7

5.9

7.8

8.1

10.5

14.0

10.1

10.2

RONW % **

13.4

13.4

12.9

12.8

13.4

15.5

16.4

21.6

28.8

23.5

22.7

ROCE % **

12.7

12.7

11.5

11.2

11.6

13.2

13.9

20.3

20.3

20.5

20.5

EBDIT / Gross Turnover %
Net Profit Margin %

In this Annual Report $ denotes US$
1US$ = ` 62.50 (Exchange rate as on 31.03.2015)
* Adjusted for issue of bonus shares in 2009-10 in the ratio of 1:1
** Adjusted for CWIP and revaluation

46

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

MANAGEMENT’S DISCUSSION AND ANALYSIS
FORWARD-LOOKING STATEMENT
The report contains forward-looking statements, identified by words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’,
‘intends’, ‘projects’, ‘estimates’ and so on. All statements that address expectations or projections about the future, but not limited to the Company’s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The Company’s actual results, performance or achievements could thus differ from those projected in any forward-looking statements. The
Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events.

OVERVIEW
The global economy in FY 2014-15 witnessed divergent trends among major economies and stress on major oil producing countries as a direct result of sharp decline in energy prices, especially in the second half of the year.
Strong growth in oil output from non-OPEC (Organisation of the Petroleum Exporting Countries) producers, coupled with weak demand in some key consumption economies led to an oversupplied oil market, precipitating a sharp decline in oil prices, during the year. The decline in oil prices was further accentuated by OPEC’s decision not to cut back production in their respective countries.
A sustained lower oil price environment will benefit commodity importing countries, such as India. Falling energy prices have significantly improved India’s overall fiscal landscape, and augur well for growth in domestic consumption. Despite unpredictable headwinds, the global economic recovery is gaining momentum. These winds of positive change have masked the growth divergence among major economies.

interest rates. The share of investments in Gross Domestic
Product (GDP) is at 29% (compared to 33% in 2007) and is expected to pick up. However, productivity and capital efficiency improvement are likely to drive near-term growth. Despite the significant decline in commodity prices,
Reliance Industries Limited (RIL) delivered a robust financial performance, led by record earnings from the refining business. The dramatic fall in crude oil prices impacted RIL’s upstream business, and resulted in lower revenues and stock values for the refining and petrochemical businesses. However, the benefits from demand revival, strong product margins and lower energy costs outweighed inventory effects, and both refining and petrochemical businesses ended the year on a strong note. In FY 2014-15, Reliance (consolidated RIL) achieved:
Highest ever consolidated net profit of ` 23,566 crore
($ 3.8 billion)
Record Refining EBIT of ` 15,827 crore ($ 2.5 billion),
Gross Refining Margins (GRM) of $ 8.6/barrel (bbl)
Dividend of 100%, payout of ` 3,559 crore ($ 569 million) Operationally, RIL continues to optimally utilise its bestin-class downstream assets, with near full utilisation levels in most petrochemical units. RIL processed 67.9 million metric tonnes (MMT) of crude oil at its Jamnagar refinery complex, achieving 110% operating rate.
Continuing its emphasis on processing challenging and most advantageous crudes, RIL processed 13 new crudes during the year. The crude sourcing strategy was driven by continuous adjustment of sourcing pattern based on relative economics. The ability to operate at high utilisation levels and switch product slate to suit market conditions enable RIL to capture margin optimisation opportunities in the market.
RIL ranked 114th in the Fortune Global 500 list of the
World’s Largest Corporations in terms of revenues, and was

Specifically, the recovery in United States was stronger than expected, while performance in Japan and Eurozone has fallen short of expectations. This has resulted in the dollar appreciating vis-à-vis other G7 currencies. The currencies of commodity exporting countries weakened due to fiscal and trade imbalances.
India’s economy is poised to return to its high-growth path, thanks to lower fiscal and current account deficits, falling inflation, benign commodity prices, and structural reforms to boost investments. Monetary policy is also likely to be supportive with the Reserve Bank of India
(RBI) having moved to flexible inflation targeting. The manufacturing sector is likely to benefit from lower

Processed 67.9 MMT of crude oil at Jamnagar refinery

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ranked 155th in terms of profits. This is the 11th consecutive year that RIL has featured in the Fortune Global 500 list.

HIGHLIGHTS AND KEY EVENTS
Reliance delivered an industry-leading performance across its refining and petrochemicals business, despite a challenging crude market environment. Its international upstream business demonstrated strong volume growth, whilst domestic Exploration and Production (E&P) business witnessed lower production due to geological complexities and natural decline in the fields. Reliance also made substantial progress on various projects in the refining and petrochemicals business during the year. These initiatives are expected to create significant value for its stakeholders. Furthermore, strong growth momentum was maintained in its consumer-facing retail business. Refining and Marketing – Record earnings
The refining business delivered record earnings, driven by strong underlying business performance. Refining margins were robust on the back of healthy product cracks and lower energy costs. The year’s key highlight was the dramatic decline in crude prices. Continuous non-OPEC crude oil production growth, led by the US, partial return of Libyan barrels, muted oil demand growth resulted in an oversupplied crude market, leading to a sharp decline in crude oil prices. The fall of oil price was further accentuated by OPEC’s decision not to cut back production in their respective countries. RIL’s refining margins at $ 8.6/bbl significantly outperformed regional benchmarks as the superior configuration of its refineries enabled it to benefit from strong light product cracks, favourable crude differentials and stable middle distillate cracks. Petrochemicals – Focus on capacity creation
Petrochemical business EBIT margins improved to 8.6% from 8.1% in the previous year. The improvement in EBIT margins were aided by firm polymer and polyester deltas, partly offset by weak fibre intermediates deltas.
RIL successfully stabilised the production at its new
Polyester Filament Yarn (PFY) facility at Silvassa, which had started production towards the end of the last financial year. This expansion has further strengthened RIL’s position among the world’s largest producers of polyester fibre and yarn. The new PFY plant at Silvassa is the most automated and one of the most environment-friendly plants globally.
During the year, RIL also started production at its new
150 kilo tonnes per annum (KTPA) capacity Styrene
Butadiene Rubber (SBR) plant at Hazira, which is also
India’s largest plant. The plant has capability to produce an entire range of dry as well as oil extended grades of emulsion SBR. With this, RIL has reaffirmed its leadership in synthetic rubbers in the Indian market.

During FY 2014-15, RIL also expanded its Poly-Butadiene
Rubber (PBR) capacity. With the start-up of new PBR capacity at Hazira, RIL is expected to increase its domestic market share as substantial portion of production from new line will be placed in the domestic market.
RIL has also started new Polyethylene Terephthalate (PET) resin facility at Dahej, Gujarat. The plant consists of two lines with a combined manufacturing capacity of 650
KTPA. This is one of the largest bottle-grade PET resin capacity at a single location globally. This will consolidate
RIL’s position as a leading PET resin producer with a global capacity of 1.15 million metric tonnes per annum
(MMTPA).
RIL also started new Purified Terepthalic Acid (PTA) plant at Dahej, Gujarat. The plant with a capacity of 1150 KTPA is built with ‘Invista technology’. This state-of-the-art facility is highly energy efficient and environment friendly. With this facility, RIL’s total PTA capacity will increase to 3.2
MMTPA and global capacity share to 4%.
RIL announced a project to source 1.5 MMTPA of ethane from the US to feed its crackers in India. RIL executed storage and capacity agreements for liquefaction and export of ethane with a North American terminal, which is expected to commence operations in the second half of 2016. RIL also placed orders for building of Very Large
Ethane Carriers (VLECs) in a Korean yard and entered into a shipping management agreement to ensure end-toend integration. RIL has initiated discussions with major ethane suppliers in North America for long term sourcing arrangements. The project is expected to significantly improve the long term competitiveness of its cracker portfolio through dedicated feedstock, enhanced margins and higher capacity.

Oil and Gas Exploration and Production - Sustained performance International - Growth in Shale gas business

The US shale gas business witnessed macro headwinds, with a sharp downturn in commodity prices, especially in the case of oil. But operationally, the business continued its strong performance, with production at record levels.
During the Calendar Year (CY) 2014, gross JV production averaged at ~1.2 Billion Cubic Feet equivalent per day
(BCFe/d), reflecting 26% y-o-y growth. The US shale business delivered EBIT of $ 402 million, an increase of
36.3% on y-o-y basis.
During the year, RIL and Myanma Oil & Gas Enterprise
(MOGE), an enterprise of the Government of Myanmar signed a production sharing contract for two offshore blocks (M17 and M18) in the Tanintharyi basin of
Myanmar. RIL will be the operator of the blocks with a
96% participating interest. The United National Resources
Development Services Co. Ltd. (UNRD), a Myanmar company, will hold the remaining interest in the block.

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Annual Report 2014-15

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
Domestic

Gas production from the KG-D6 field declined by 12% to
157.6 Billion Cubic Feet (BCF) in FY 2014-15. Efforts by RIL and its JV partners to augment production from the field through interventions like side-track wells and onshore terminal booster compressor helped partly offset the natural decline in the field.
During the year, RIL made significant progress towards development of two Coal Bed Methane (CBM) blocks,
Sohagpur East and Sohagpur West. Detailed engineering and construction activities have been completed. RIL expects first gas production from these blocks during
FY 2015-16.
In October 2014, Government of India (GoI) notified the
New Domestic Natural Gas Guidelines, 2014. Based on the new guidelines, domestic gas prices in the period from November 2014 to March 2015 were set at $ 5.05/
Million British Thermal Units (MMBTU) on Gross Calorific
Value basis.

Retail Business – Gaining growth momentum
Reliance Retail continued its growth momentum, despite a challenging macroeconomic environment. Its revenues for FY 2014-15 increased by 21.2% to ` 17,640 crore, while
EBIT was at ` 417 crore. The retail business achieved several new milestones during the year. The Company enhanced its presence across various format sectors. Reliance Retail now operates 2,621 stores across 200 cities, with over
12.5 million square feet of space. Reliance Trends now operates over 200 stores and sells over 1,50,000 pieces of garments per day. Reliance Digital operates over 1,100 stores and the Digital Express Mini format has established itself as the country’s largest mobile phone retail chain.
Reliance Market further consolidated its position as the largest cash-and-carry operator in the country, with 43 operational stores and patronage of more than 1.5 million registered members.

Jio Infocomm– Building infrastructure to roll out digital services
Reliance Jio Infocomm Limited (RJIL), a subsidiary of RIL, is setting up a pan-India telecom network to cater to the highly underserviced Indian market, reliable high speed internet connectivity (4th generation), rich communication services and various digital services in key domains, such as education, healthcare, security, financial services, government-citizen interfaces and entertainment. RJIL aims to provide anytime, anywhere access to innovative and empowering digital content, applications and services, thereby propelling India into global leadership in digital economy.
RJIL has made significant progress in building its 4G-LTE
(Long Term Evolution) business, including physical network infrastructure, systems and processes, sales and distribution network, applications and services and content, among others. It is working with strategic partners who have committed significant resources,

knowhow and global talent to support deployment and testing activities currently underway.
During the year, RJIL successfully acquired the right to use spectrum in 800 MHz band or 1800 MHz band or both in 13 key circles across India in the spectrum auction conducted by Department of Telecommunication (DoT), GoI. RJIL plans to provide seamless 4G services, using LTE technology in
800 MHz, 1800 MHz and 2300 MHz bands through an integrated ecosystem. With this new spectrum, in addition to the pan-India 2300 MHz spectrum, RJIL has spectrum in either 800 MHz or 1800 MHz or both in 20 out of total
22 circles in the country. This combined spectrum footprint across frequency bands provides significant network capacity and deep coverage.

Media and Entertainment
During the year, Independent Media Trust (IMT) of which RIL is the sole beneficiary, acquired the control of
Network18 Media & Investments Limited (Network18) including its subsidiary TV18 Broadcast Limited (TV18).
This acquisition will differentiate Reliance’s Jio business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties.

Other Corporate Highlights
During FY 2014-15, RIL issued Rule 144A/Regulation S
Senior Unsecured Notes of $ 1.0 billion for a tenure of 10 years and $ 750 million for 30 years. The 10-year Notes were the lowest coupon Notes ever issued by RIL. The 30 year Notes were issued at the lowest coupon ever achieved by an Asian private corporate issuer for a 30-year issuance.
The 10-year Note issuance was the largest private sector oil and gas deal out of Asia (ex-Japan) since the last RIL guaranteed bond issued in 2012. RIL continues to be the only Rule 144A/Regulation S 30-year private corporate issuer out of Asia since 2003.

Corporate Social Responsibility

During the year, RIL has contributed ` 761 crore (previous year ` 712 crore) towards Corporate Social Responsibility
(CSR) which is 3.35% (previous year 3.24%) of profit after tax for the year.

CSR spend during the year amounted to ` 761 crore

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FINANCIAL PERFORMANCE AND REVIEW
Financial Information – Consolidated and Standalone
Consolidated

Particulars

Standalone

FY 2013-14

FY 2014-15

FY 2013-14

FY 2014-15

` in crore

$ in billion

` in crore

` in crore

$ in billion

` in crore

3,88,494

62.2

4,46,339

3,40,814

54.5

4,01,302

PBDIT

45,977

7.4

43,800

40,323

6.5

39,813

Cash Profit

36,291

5.8

33,980

31,832

5.1

30,795

Net Profit

23,566

3.8

22,493

22,719

3.6

21,984

Cash and Marketable Securities

84,472

13.5

90,637

78,291

12.5

88,190

Fixed Assets

3,18,523

51.0

2,32,911

1,90,316

30.5

1,51,122

Gross Debt

1,60,860

25.7

1,38,761

97,617

15.6

89,968

Revenue from Operations

Reliance delivered superior financial performance on a consolidated basis, with improvements across key parameters. compensating for weaker fibre intermediates deltas. Oil &
Gas segment EBIT grew by 13% to ` 3,181 crore, led by strong growth in US shale volumes.

Reliance achieved a turnover of ` 3,88,494 crore ($ 62.2 billion) for the year ended 31st March, 2015, a decrease of
13.0%, as compared to ` 4,46,339 crore in the previous year. The decline in turnover reflects sharp fall in crude oil prices during the second half of the year. Crude oil price averaged at $ 85.4/bbl for the year, a fall of 21% on y-o-y basis. With decrease in oil and product prices, exports from India were lower by 17.1% at ` 2,28,651 crore ($ 36.6 billion) as against ` 2,75,825 crore in the previous year.

Other income was lower at ` 8,495 crore ($ 1.4 billion) as against ` 8,911 crore in the previous year, primarily on account of lower average investments. Other income includes interest income of ` 4,513 crore and investment income of ` 3,516 crore.

Refining segment contributed 71% of revenues
(including inter-divisional transfers). Refining segment revenues were lower by 16% on y-o-y basis reflecting lower average crude oil and product prices.
Petrochemicals business accounted for 20% of revenues, lower by 7% on y-o-y basis as product prices declined along with sharp fall in feedstock and crude oil prices.
Oil & Gas business revenue grew by 6%, compared to previous year primarily on account of 27% increase in shale gas production which was partially offset by lower production from Panna-Mukta, Tapti and KG-D6 block in India.

Interest cost was lower at ` 3,316 crore ($ 531 million) as against ` 3,836 crore in FY 2013-14. Interest capitalised was higher at ` 4,409 crore ($ 705 million) as against
` 1,758 crore last year, on account of ongoing expansion projects in the petrochemicals, refining, US shale gas business and also broadband access project.
Depreciation (including depletion and amortisation) was marginally higher at ` 11,547 crore ($ 1.8 billion) as against
` 11,201 crore in FY 2013-14. This was primarily on account of higher depletion charges in US shale gas business, which was in line with increase in production.
Profit after tax for the year was at ` 23,566 crore ($ 3.8 billion), an increase of 4.8% over ` 22,493 crore in the previous year. Growth in net profit was led by higher operating income from the refining and US shale gas business. Operating profit before other income and depreciation increased by 7.3% on a y-o-y basis from ` 34,799 crore to
` 37,364 crore ($ 6.0 billion).
Strong operating performance from the refining business and stable petrochemicals business performance led to higher operating profits. Refining segment EBIT recorded a robust 18% growth on y-o-y basis to ` 15,827 crore ($ 2.5 billion) with strong GRM and lower energy cost. Petrochemical segment EBIT remained stable at
` 8,291 crore ($ 1.3 billion), with strong polymer deltas

Operating profit before other income and depreciation

` 37,364 crore
7.3% increase as compared to previous year

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Annual Report 2014-15

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
The basic and diluted EPS for the year was ` 80.1 per share as compared to ` 76.5 per share in FY 2013-14, registering 4.7 % growth.
The Board of Directors have recommended, subject to approval of shareholders, a dividend of 100 % amounting to ` 3,559 crore ($ 569 million), including dividend distribution tax. This shall be the highest payout ever by RIL even though capex commitments are significantly higher.
Key subsidiaries which contributed to incremental revenues and profits were the US shale operations and domestic retail business.
Key subsidiaries

(` in crore)
Revenue from
PBDIT
Operation

Reliance Retail
Ventures Limited*
GAPCO*
Recron Malaysia Sdn
Bhd
Reliance Holding USA
Inc. (Shale)*

Profit/(Loss) after Tax

17,640

784

193

14,006

179

72

6,795

(223)

(279)

6,010

4,232

756

* consolidated

Capital expenditure for the year was ` 1,00,247 crore
($ 16.0 billion) including exchange rate difference capitalisation. Capital expenditure was principally on account of on-going expansion projects in the petrochemicals and refining business (Jamnagar, Dahej and Hazira), as well as in US shale business and broadband access project.

crore and subsidiary debt mainly raised by Reliance
Holding USA (` 36,359 crore), Reliance Jio Infocomm
(` 22,305 crore), Recron Malaysia (` 1,481 crore), Reliance
Retail (` 1,682 crore) and Independent Media Trust Group
(` 1,001 crore).
Cash and marketable securities were at ` 84,472 crore
($ 13.5 billion), resulting in consolidated net debt of
` 76,388 crore ($ 12.2 billion).
RIL’s standalone revenue from operations for FY 201415 was ` 3,40,814 crore ($ 54.5 billion), a decrease of
15.1% on y-o-y basis. Standalone profit after tax was at
` 22,719 crore ($ 3.6 billion), an increase of 3.3% against
` 21,984 crore in the previous year. EPS on standalone basis for the year was at ` 70.2 as against ` 68.0 in the previous year.

BUSINESS PERFORMANCE
REFINING AND MARKETING
Refining & Marketing (R&M) business segment sources crude and feedstock from the international markets, processes it at Jamnagar refinery complex and sells high value petroleum products globally. RIL generates value by processing the most advantaged crudes, optimally utilising refinery assets and placing products in the highest net-back markets. RIL manages high quality refining assets with advantaged design capacity for processing 1.24 million barrels per day (MMBPD) of crude, fully utilising the range of options and flexibility that is built into them.
Reliance’s global footprint includes international trading locations (in US, London and Singapore), international tankages and presence in East Africa through GAPCO.
During FY 2014-15, R&M business posted record earnings, despite volatile market conditions, driven primarily by good product price realisations, lower energy costs, superior configuration, asset optimisation and trading capabilities. Market environment - Global
Second half oil demand recovery with fall in oil prices

Capital expenditure during the year amounted to ` 1,00,247 crore
Reliance’s fixed assets stood at ` 3,18,523 crore ($ 51.0 billion) as on 31st March, 2015. This includes fixed assets of
` 1,28,207 crore of its subsidiaries mainly in Reliance Jio
Infocomm, Reliance Holding USA and Reliance Retail.
Reliance’s gross debt was at ` 1,60,860 crore ($ 25.7 billion). This includes standalone gross debt of ` 97,617

OECD demand reduced by 0.5 MMBPD due to lower consumption in Europe and Japan, non-OECD demand grew by 1.1 MMBPD. Sluggish Chinese demand and improved energy efficiency in non-OECD countries have led to the slowdown in demand growth. This year’s oil demand growth is marked by two contrasting halves.
Sluggish Chinese demand, improving efficiency standards, especially in the OECD economies led to a marginal decline in oil demand in the first half of 2014.
The steep fall in oil prices has had a significant macroeconomic impact on oil producers and consumers. It benefited oil importers with higher disposable income

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120
100
80
60
40

Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
May-13
Jul-13
Sep-13
Nov-13
Jan-14
Mar-14
May-14
Jul-14
Sep-14
Nov-14
Jan-15
Mar-15

But overall the sharp decline in oil prices boosted consumption leading to a strong growth in the second half of 2014. In 2014, average oil demand grew by
0.7 MMBPD to 92.5 MMBPD.

Oil Prices

($/bbl)

for consumers and lower costs in the production of final goods. For many importers, the boost from lower oil prices, while sizable, is somewhat muted by the recent currency depreciation against the US dollar. This implies a smaller oil price decline in domestic currency. On the other hand, oil exporters’ real incomes and profits have generally decreased.

Oil markets remained oversupplied, dominated by nonOPEC supply

On the supply side, overall crude oil supply increased by
2.0 MMBPD in 2014, driven entirely by non-OPEC supply, leaving OPEC production more or less flat.
Geo-political tension and social unrest in several major oil exporting countries in the Middle East and Africa was overshadowed by persistent oversupply in the oil market.
The main feature was the growth in US oil production which surged by 1.6 MMBPD in 2014. Significant production increase in Iraq (0.25 MMBPD), Canada (0.25
MMBPD) and Brazil (0.19 MMBPD) also contributed to overall supply. Post the steep oil price drop in the second half of 2014, most upstream players in the US have announced very significant cut in their capex programme. This may restrict growth in US shale oil production from the second half of 2015.
Oil prices collapsed by over 50%, after remaining rangebound for nearly 3 years

This gap between supply growth of 2.0 MMBPD and demand of less than 1 MMBPD had put pressure on OPEC to cut production. Oil prices had traded in a range of $100
– $115/bbl from 2010 until around mid-June of 2014.
The average Brent price was $ 109/bbl from January to
June in 2014, but then started to drift down and then by
September moved sharply lower. This was triggered by
Saudi Arabia clearly signalling its unwillingness to absorb the excess supply, so prices had to fall to make storage economics work in the near term and in the medium term trigger the actions to balance supply and demand.
The steep fall in crude prices has led to a reduction in planned upstream investments. This is expected to have short-term and long-term effects. The decline in investments in the US shale oil may have an early impact on reduction in oil production, while decline in other high cost E&P investments by oil majors could have long-term consequences on future crude supplies.

Brent

WTI

Dubai

Brent Average
FY 2013-14: $ 108/bbl
FY 2014-15: $ 85/bbl
Refining margins supported by lower fuel costs and higher product cracks specially Light ends

Lower fuel costs on the back of low oil prices, frequent unplanned outages and delays in new refinery startups, supported the margins. New refinery additions and expansions in existing refineries were partly offset by closures in the US, Europe and Japan, leading to a net capacity addition of about 0.6 MMBPD, compared to demand growth of 0.7 MMBPD. Lower oil prices and higher margins led to an increase in average refinery utilisation rates in North America (86.9% in FY 2014-15 compared to 85.1% in FY 2013-14) and Europe (80.7% in FY 2014-15 compared to 78.2% in FY 2013-14). In Asia, operating rates were almost flat at 83.5% in FY 2014-15.
Product Cracks

Asian Cracks
- $/bbl
Naphtha
Gasoline
Jet
Gasoil
Fuel Oil

1Q

-1.0
16.1
14.3
16.0
-12.8

2Q

3Q

4Q

-1.6 -5.1
13.2 13.4
14.5 17.7
14.4 16.0
-10.5 -7.2

1.5
15.4
17.1
16.2
-3.0

FY
FY
2014-15 2013-14
-1.5
14.5
15.9
15.7
-8.4

-4.3
12.7
16.7
17.4
-10.5

Source: Platts

Light distillates
Light ends exhibited strength throughout the year.
Gasoline cracks remained supported on robust demand growth in the US, China and India. In the US, falling pump prices pushed gasoline demand particularly in the last few months of the year. Chinese passenger car sales continued to grow, even though at a lower rate, compared to the previous year. In India, narrowing of gasoline – diesel price differential, supported demand for more gasoline cars through the year. Naphtha cracks held relatively stronger during the first half of FY 2014-15, amid a demand escalation from Asian petrochemical sector and

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) some unplanned outages. Naphtha strength continued in the last quarter supported by both petrochemicals and gasoline demand.
Middle distillates
Middle distillates (both diesel and jet/kerosene) weakened when compared to last year, mostly on slow demand growth in major consuming countries like China, India and Indonesia. Cracks got some support due to falling crude prices. Gasoil cracks gained some strength in the last quarter as China’s effort to stimulate its economy by cutting interest rates supported demand, and low pump prices in India aided a demand recovery especially during the last quarter of the year.
Jet cracks were weak during the first half of the year; however bounced back in the second half on improved air travel demand and maintenance/unplanned outages in
Europe and the US, which tightened the supplies.
Fuel oil
Fuel Oil (FO) cracks were weak at the beginning of the year on tepid bunker demand, but picked up in the second half on low outright prices and improving bunker demand.
Crude differentials
Arab Light – Heavy crude differentials widened marginally to $ 4.3/bbl in FY 2014-15 as compared to $ 4.2/bbl in the previous year. Heavier crudes, particularly from Latin
American sources continue to be available with incremental light oil supply in North America. While new refineries getting built are increasingly complex and require heavy crudes as feedstock, crude production increase is more on the lighter side over the next few years leading to possibly narrowing of Light-Heavy differentials in the medium term.
RIL continued to outperform regional benchmarks

RIL refining margins outperformed Singapore benchmark yet again, with a premium of $ 2.3/bbl over the benchmark during FY 2014-15. Relative performance versus benchmarks was built on advantaged configuration to secure higher value product yields, wider selection of crudes, operational efficiency and record throughputs.

Strong margins in the second half of the year and lower energy costs were the key drivers for record earnings.
However, fall in oil prices impacted the value of the inventories, as seen in lower margins for the third quarter.
Gross Refining Margins

Regional
Margins
($/bbl)
Singapore
Complex
RIL GRM
Rotterdam
(Brent)
USGC (WTI)

FY
FY
2014-15 2013-14

1Q

2Q

3Q

4Q

5.8

4.8

6.3

8.6

6.3

5.9

8.7

8.3

7.3

10.1

8.6

8.1

2.5

5.6

5.9

7.5

5.4

3.9

8.9

11.0

9.4

19.4

12.2

10.6

Source: Reuters

Strategic advantages and competitive strength
Refinery configuration: RIL’s refinery at Jamnagar is among the largest and most complex refining assets globally, with a Nelson Complexity Index of 12.7. The refinery’s superior configuration gives RIL the ability to process a wide variety of crudes and meet differentiated and stringent product specifications. Additionally, RIL has significant flexibility to alter the product mix, thereby capturing opportunities arising due to the evolving market dynamics.
Crude selection and sourcing: RIL’s asset flexibility and logistics infrastructure allows optimisation of crude portfolio to suit the changing market conditions. With inherent design flexibility, RIL optimises the crude diet, sourcing the most advantageous crude globally. During FY
2014-15, many new initiatives were launched to enhance the flexibility of RIL’s assets and enable them to process even heavier and higher contaminant content crudes.
Crude slate processed in FY 2014-15 was one of the most challenging slates, processed by only a few refineries in the world. During the year, RIL processed 13 new crudes grades. RIL has been regularly processing challenging crude grades with sulphur content of over 5%, Total Acid
Number (TAN) of 5 milligram per potassium hydroxide
(mg/KOH), Viscosity of ~ 5000 cst and an API as low as 10.
Market access: RIL’s global outreach, including trading offices at key locations like Houston, London, Singapore and Mumbai, gives it a broad coverage for crude supplies and product sinks. Tankages at major trading hubs allow
RIL to move its selling point closer to consumption hubs and improve responsiveness to market needs.
Logistics and supply-chain: RIL’s state-of-the-art refineries

Jetty at Jamnagar

are supported by a world-class dedicated logistics infrastructure, including a marine facility, giving access to the world’s largest crude and product vessels. This facility allows berthing of ships ranging from small chemical carriers to VLCCs, thus allowing it to benefit from strong crude and product freight economics and enhanced cost competitiveness. 02-45

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RIL’s Gross Refining Margin
25

($/bbl)

20
15
10
5
0

FY11
USGC

FY12
Rotterdam

FY13

FY14

Singapore

FY15
RIL

Outperformed
Singapore benchmark by $ 2.3/bbl
Operational excellence: RIL excels in managing and utilising its assets most efficiently to generate superior returns. While maintaining highest standards of safety,
RIL ensures high on-stream factor with focus on improving energy efficiency and reducing operating and maintenance cost.

Heater of Aromatics complex at Jamnagar refinery
Energy efficiency: RIL continues to invest in improving the energy efficiency of its assets and is focused on retaining the pacesetter position in the industry on energy efficiency. Several energy conservation plans were initiated during FY 2014-15, which are currently under implementation and can reduce the energy consumption of refinery assets by about 8% in next 3 years.

Operations and Financial Performance
Financial performance*
FY 2014-15 FY 2014-15
(` in crore) ($ in billion)

Utilisation rates
Revenues
EBIT
EBIT (%)

120
100

(%)

80

54.4
2.5

*Consolidated basis

60
40
20
0

3,39,890
15,827
4.7%

FY 2013-14
% change
(` in crore)
4,05,852 (16.3%)
13,392
18.2%
3.3%

FY11
FY12
FY13
N. America
Europe

FY14
FY15
Asia
RIL

Consistently surpassing regional and global benchmarks in asset optimisation and utilisation
Several initiatives focusing on debottlenecking, capacity enhancement and yield improvement, are regularly undertaken to enhance RIL’s competitive strengths. Some examples are:
An investment to boost yield of diesel
Developed ULSD production capabilities in DTA refinery A revamp of logistics to allow managing of more grades of middle distillates and faster unloading of high pour point crudes

FY 2014-15 revenue from the R&M segment decreased by 16.3% y-o-y to ` 3,39,890 crore ($ 54.4 billion), reflecting lower average crude oil prices during the year.
Refining EBIT increased by 18.2% y-o-y to a record level of ` 15,827 crore, supported by low energy prices, strong light product cracks, favourable crude differentials and stable middle distillates. RIL’s GRM for the year stood at
$ 8.6/bbl as against $ 8.1/bbl in the previous year. During the year, RIL Jamnagar refineries processed 67.9 MMT of crude, achieving an average utilisation rate of 110%. Total exports of refined products reached $ 32.5 billion this year, compared to $ 41.1 billion for the previous year.
RIL was able to fully capitalise on the market conditions, through its operational excellence, higher efficiency and well executed strategies around crude sourcing and product placement. Continuing its emphasis on processing challenging and most advantageous crudes,
RIL processed 13 new crudes this year. The crude sourcing strategy was driven by continuous adjustment of sourcing pattern based on relative economics. The ability to operate at high utilisation levels and switch product slate to suit market conditions enabled RIL to capture margin optimisation opportunities in the market.

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
Overall, effective utilisation of secondary processing units, innovative approach to optimise logistics cost and utilisation, production flexibility to swing to higher net-back products and sourcing of best value feed stock enabled RIL to sustain its performance even in a challenging margin environment.
Global and Domestic Retail
GAPCO

GAPCO group owns and operates large storage facilities and retail distribution network in Tanzania, Uganda and
Kenya.
GAPCO has significantly improved its standing in the East
African market and has emerged as a key supplier to the neighbouring countries.
During 2014, GAPCO sold 2.8 million kilo Litres (mkLs) of petroleum products. This was lower compared to previous year due to change in sales mix to enhance profitability.
GAPCO successfully launched the first loyalty card scheme in Africa called “Safari”. The scheme is targeted to further enhance the customer fuelling experience, and offers tailor-made solutions to personal, corporate and commercial vehicle owners.
With deep market insight and improved operational processes, GAPCO is now poised to explore new growth opportunities, especially in retail sales, LPG, jet, lubes and wholesale business.
Domestic-Market environment, operating strategy and value proposition

In October 2014, GoI announced deregulation of High
Speed Diesel (HSD) prices leading to re-opening of fuel retailing outlets by the private sector. Post announcement of deregulation, prices of Motor Spirit (MS) and HSD are being changed in-line with international prices. This has presented an opportunity for RIL to re-enter the domestic retail market and ramp-up volumes to compete with local players. Between 2006 and now, industry volumes have doubled from 40 MMTPA in 2006 to 80 MMTPA. Demand for transportation fuels is expected to grow in line with growth in the country’s GDP. The retail network has increased from 31,000 in 2006 to over 53,000 outlets with majority owned by public sector units.

Trans-Connect, will also be re-launched with a host of value-added services. Focus is to ensure consistent and superior customer experience through technologyenabled initiatives.
Reliance fuels undergo stringent quality checks at various stages of product movement up to the feeding terminals.
Entire Reliance network is connected on a real time basis ensuring online monitoring and a central control of activities. The combination of latest technology, well-defined processes, value propositions with right channel partners and manpower ensures consistent delivery of superior customer experience. Trans-Connect is the backbone of the Company’s value proposition to fleet owners and provides fleet management solution aimed at revolutionising the way commercial vehicle owners operate. This provides tangible benefits to the fleet owners by reducing the working capital expenses, complete control over the fuel and non-fuel expenses of their entire fleet and smart analysis supporting better decision making.
Reliance is aggressively investing in restart of entire network with a focus on quickly regaining market share.

Capex and growth plan
Major Projects – Petcoke Gasification

Petcoke gasification project is designed to convert lowvalue petroleum coke into high value syngas for further use as fuels and for hydrogen and chemicals production.
This project would not only cause a steep reduction in
LNG imports thus increasing self-sufficiency in energy at
Jamnagar, but would also allow to manufacture various other value-added chemicals, such as acetic acid by chemical conversion of syngas which is produced by gasification of petroleum coke.
The gasification project, being based on the ‘E-gas technology’ (owned by CB&I) and having operational flexibility to use coal and petcoke as feed stock, is expected to enhance the profitability of the refinery complex significantly.

Reliance’s operating strategy and value proposition

Reliance plans to re-commission the entire network of
1,400 outlets by the end of FY 2015-16. As on 31st March,
2015, over 300 outlets are operational.
Aggressive communication campaigns and instant reward schemes have been launched to help create a market buzz and quick ramp-up of volumes. Reliance’s key differentiator, a unique fleet management programme,

Coke dome with Stacker and Re-claimer

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Management’s Discussion and Analysis

With engineering and procurement activities being nearly complete, full focus is now on construction activities at
Jamnagar, which are progressing well to meet the project timelines. Several systems like Stacker / Re-claimer, ETP,
Flare stack, Cooling towers are nearing completion.
Construction resources are at peak levels with focus on commissioning of other critical systems like ASU, SRU and
Super Heater.
RIL is looking at an accelerated commissioning of the project which is set to deliver a quantum, reduction in the energy costs.

PETROCHEMICALS
RIL is among the world’s largest producers of petrochemicals with global scale capacities across the polymer and polyester chain. Vertical integration from oil & gas to refining and downstream petrochemical products is among RIL’s key competitive advantage. This provides RIL feedstock security, scalability and economies of scale. RIL is the pre-eminent petrochemical company in
India with a product portfolio spanning across polymers, polyester, fibre intermediates, elastomers and chemicals.
The deep integration within each chain helps RIL mitigate the impact of price volatility in the global energy and chemical industry. RIL also has a diversified feedstock slate, with both naphtha and gas based crackers, which helps to mitigate risk involved with different feedstock cycles. World-scale capacities and integration help RIL in achieving industry-leading profitability with enhanced stability. RIL constantly focuses on technology, cost improvements and safe practices, while continuing to invest in new growth opportunities. RIL believes that this strategy is also important in maintaining domestic market leadership in its major product lines and is a source of competitive advantage. Market environment and outlook
FY 2014-15 provided the petrochemical industry with both challenges and opportunities. The steep decline in global energy prices during the second half of the year was compounded by increased supply from the
US markets, leading to a sharp decline in petrochemical feedstock and product prices. The impact of the steep drop in commodity petrochemical prices was felt across the petrochemical chain and resulted in significant destocking for the industry in 3Q FY 2014-15. However, stabilisation of product prices at lower levels is likely to aid a faster revival of demand growth. Petrochemical consumption is correlated to global economic growth.
Improving macro-economic activity levels is likely to drive demand for petrochemical end uses that encompass most consumer goods, such as appliances, electronics and automobiles; construction or industrial uses as solvents, coatings as well as packaging.

Olefins and Polymers

Ethylene and propylene are the key petrochemical raw materials used in manufacturing of polymers, like
Polypropylene (PP), Polyethylene (PE), Polyvinyl chloride
(PVC) and chemicals like ethylene oxide and ethylene glycols. Global demand for ethylene increased by 3.2% y-o-y to
137 MMT in 2014. Global ethylene operating rates, which are indicative of the margin environment, improved marginally on a y-o-y basis to 87.8% in 2014, sustaining above the five-year average of 86.7%.
Global ethylene supply/demand 2014
Production by feedstock

Demand by end use

Production : 137 MMT

Demand : 137 MMT

Naphtha
Ethane
Propane
Butane
Others

46%
35%
9%
5%
5%

PE
Ethylene Oxide
EDC
EBZ
Others

61%
15%
10%
6%
8%

Source: IHS

Northeast Asia and North America remain the world’s largest ethylene producing regions. However, recent large investments in the Middle East have propelled this region into the group of the largest-producing regions, and it has now surpassed West Europe in respect to ethylene production. The low cost position of the US Gulf Coast, due to the ethane advantage that has developed over the past several years, with increasing shale gas production, is resulting in new grassroots steam cracker investments.
Mostly, propylene is produced as a co-product in steam crackers or a by-product in refineries. Feedstock changes and/or utilisation rate changes impacts propylene production. RIL produces a large part of propylene as a byproduct of refinery, which helps the Company to take full advantage from refinery integration. Propylene demand is dominated by polypropylene production. Polypropylene is expected to remain the largest propylene derivative, and has historically grown at very high rates due to its low cost and versatility.

Methyl Ethylene Glycol plant at Hazira

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
Asian cracker operating rates were higher in FY 2014-15 with an improvement in naphtha cracking fundamentals and a healthy demand environment.
Lower crude oil prices impacted the ethylene cash cost curve as naphtha prices tracked crude lower during the second half of FY 2014-15. This improved the cash cost economics of liquid based crackers, as against crackers based on other feedstock, resulting in a flattening of the global ethylene cash cost curve. Lower crude prices are also impacting the competitiveness of coal-to-chemicals plants with erosion of the spread between coal and oil prices. While North American gas cracking is still at the low end of the cost curve, the reduced margins could lead to a more evenly distributed build-out of ethane based crackers with some already announced (but not yet under construction) projects being pushed out.

reducing margins for gas based producers from the US and the Middle East. Globally, propane prices were also under pressure this year due to increased exports from the
US with start-up of new propane export terminals.
Average naphtha prices in Asia were lower in FY 201415 due to ample supply and drop in crude oil prices.
However, from 2Q FY 2014-15 naphtha prices firmed up due to higher gasoline cracks, increased demand from
NEA/SEA and refinery turnarounds. On a y-o-y basis ethylene prices were down by 5% and lagged the decline in feedstock naphtha prices, which was down 18% during the same period. Ethylene prices rebounded in 4Q FY
2014-15, due to supply constraints and improved demand.
Ethylene supply in Asia is likely to stay tight due to limited incremental supplies.
South East Asia polymers deltas

Global thermoplastics market in 2014 was estimated at
224 MMT. PE accounted for 38%, PP 26% and PVC 18%, of the market. Demand for these polymers (PE, PP, PVC) grew by 3.8% during 2014 driven by Indian subcontinent, North
East Asia (NEA), South East Asia (SEA) and the Middle East.
The demand for these polymer products is likely to grow at a CAGR of 4% over 2014-19 period.
Global polyolefin and PVC demand

(In MMT)

2014

PE
PP
PVC
Ethylene
Propylene

85
59
40
137
89

2013
82
56
39
133
86

% growth
4%
4%
3%
3%
4%

Source: IHS

Price and delta environment

($/MT)

FY 2014-15

HDPE-Naphtha
PP-Propylene
PVC-EDC-Naphtha

694
277
453

FY 2013-14
574
149
463

Source: Platts

Polymer deltas remained healthy during FY 2014-15, as feedstock prices declined sharply and demand remained stable. On a y-o-y basis, PP deltas improved sharply as decline in propylene prices (with lower downstream activity in China in a well-supplied market) was sharper than the decline in polypropylene prices, which were supported by firm demand. PE delta also remained strong on a y-o-y basis as feedstock prices tracked falling crude oil price. Relatively higher ethylene prices compared to naphtha helped in supporting High Density Poly Ethylene
(HDPE) prices, resulting in high HDPE-Naphtha deltas.

Polymers:

Polyester and Fibre Intermediates

The year witnessed a sharp decline in feedstock and product prices. Year-end prices of naphtha and olefins were down 12-43%, compared to prices at the beginning of the year. Polymer prices also declined on an absolute basis, with year-end prices 15-19% lower than prices at the beginning of the year.

Polyester: Polyester markets faced challenges during the year as feedstock volatility was accentuated by capacity additions, which were significantly ahead of demand growth. As with other hydrocarbon chains, prices for feedstock and final products witnessed a steep decline during the year, with price declines ranging from 12-41%.

Entry and Exit prices for FY 2014-15

Entry and Exit prices for FY 2014-15

$/MT
Oil - Dubai
($/bbl)
Naphtha
Ethylene
Propylene
EDC
PE
PP
PVC

Entry price
Exit price
01st April, 2014 31st March, 2015

% change 104

53

-49%

914
1,430
1,320
490
1,535
1,515
1,020

519
1,260
990
300
1,250
1,245
870

-43%
-12%
-25%
-39%
-19%
-18%
-15%

Source: Platts

The low crude oil prices resulted in flattening of ethylene cash cost curve benefiting naphtha-based producers and

$/MT
PX
BZ
PTA
MEG
POY
PSF
PET

Entry price
01st April, 2014
1,206
1,263
936
940
1,350
1,310
1,301

Exit price
31st March, 2015
822
750
642
829
1,090
1,025
971

% change -32%
-41%
-31%
-12%
-19%
-22%
-25%

Source: Platts and ICIS

Polyester fibre and yarn markets started the year amid uncertain feedstock price trends, leading to a conservative
(need-based buying) approach by downstream units.
The year 2014 witnessed filament capacity growth of

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2.2 MMT compared to a demand growth of under 2.0
MMT. In addition to the overcapacity in the filament yarn segment, higher raw material cost and consequent declining margins during the first half forced producers to rationalise operations. During the third quarter, raw material costs saw a decline with the steep drop in energy prices. While polyester fibre and yarn prices were also lower by ~25% from their peak in June 2014, the lag in price drops supported polyester deltas. FY 2014-15 margins of Partially Oriented Yarn (POY) and Polyester
Staple Fibre (PSF) were higher by 20% on y-o-y basis.
Cotton production of 26.3 MMT in FY 2014-15 remained higher than consumption for the fifth consecutive season. Along with this, the Chinese policy of limiting cotton purchases for the year weighed on prices which ended 23% lower than last year. However, with the steep drop in polyester prices towards the later part of the year, polyester v/s cotton price difference stayed above long-term levels, at $ 500/MT, mitigating the threat of substitution in blends.
The outlook for the coming year is favourable for polyester as the declining cotton prices globally has discouraged cotton farming in major cotton growing countries, leading to a lower cotton acreage for the next season.
This could lead to production falling below consumption for the first time in five years and support cotton prices.
Indian polyester demand is expected to reach a level of around 6 MMT, at a CAGR of around 8 % by end of 2020.
Global PET markets witnessed a series of new capacity additions during the year amounting to 1.5 MMT, compared to lower demand growth of 0.6 MMT. Overall market balance weakened even though some capacities were taken off for extended periods especially in China.
Prices during the year declined steadily apart from a short spurt during second quarter, average prices for the year were 15% lower than last year. Margins however improved in the second half of the year amid the drop in feedstock costs and ended the year 5% higher on a y-o-y basis. In most emerging markets, demand was strong reflecting better consumer spending. Several countries started antidumping investigations against China. Europe withdrew

an agreement with Indian producers, resulting in higher anti-dumping and anti-subsidy duties from India. The use of food grade Recycled PET (RPET) increased in the US and Europe, amid new capacity addition. But with prices of virgin PET dropping, the use of recycled content as a choice becomes difficult.
Fibre intermediates: During the year, overcapacity in the fibre intermediate markets led to a decline in prices and margins. Paraxylene (PX) demand uncertainty, along with capacity anticipations, kept markets cautious and contract prices remained unsettled for most part of the year.
Deltas continued to be above break-even levels though they were 27% lower than previous year. PX witnessed a bunching up of capacity additions during the second half of the year, with 4.7 MMT total additions during the year compared to demand growth of 1.4 MMTPA.
The Chinese PTA markets have witnessed large capacity addition during the past years, changing market dynamics significantly. Poor margins forced producers to shut down unviable plants or implement production rationalisation.
The average PTA prices during the year declined by
20% from that of last year. Delta continued to be under pressure due to the overcapacity and averaged at
$ 108/MT as against $ 117/MT in the previous year.
Mono-Ethylene Glycol (MEG) markets were largely guided by the upstream markets and co-feedstock PTA demand patterns. The average MEG prices during the year declined by 13% from that of last year and average deltas were lower by 6% on a year on year basis.
Polyester and fibre intermediates deltas
($/MT)
POY
PSF
PET
PX
PTA
MEG

FY 2014-15

401
214
155
354
108
384

FY 2013-14
337
179
148
486
117
408

Source: Platts and ICIS

Chemicals and Elastomers

Benzene: The expected oversupply of benzene at the beginning of the year in the Asian region was pushed back due to delays in commissioning of plants in Korea,
Singapore and India. However, as the year progressed start-up of new capacities during the third quarter resulted in bunching of new supplies, along with the declining global energy markets resulted in price and margin decline during the year.

Polyester Bobbins at Silvassa

Linear Alkyl Benzene (LAB): LAB markets were weighed down by the continuous uncertainty in the upstream markets which was coupled with overcapacity. In the absence of adequate Chinese domestic demand, most producers opted for exports resulting in price competition,

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) affecting the overall industry profitability. Continuing volatility and declining feedstock prices led to cautious buying. Butadiene: During 2014, the global capacity of butadiene was at 14.5 MMTPA with 76.4% operating rate. Demand saw subdued growth of 5.2% y-o-y, driven by synthetic rubber demand primarily catering to the automobile industry. SBR and PBR markets in Asia were weak in 2014 and demand is yet to recover. Most butadiene consuming plants in Asia, especially China have been operating at reduced rates due to weaker downstream demand. This has put pressure on butadiene prices, resulting in severe margin erosion for butadiene manufacturers towards the end of the year.
PBR: Demand for PBR is largely driven by growth in the automobile sector. The global automobile industry grew by 3% to reach 86.9 million units in 2014. Global
PBR consumption for FY 2014-15 remained weak and is expected to grow at 5% in 2015. Significant capacity addition in China during 2014, coupled with the slowdown in global economy kept the operating rates of PBR plants at lower levels (~67%). Major manufacturers in China and
Korea, operated plants at lower rates of 40-50% due to weak regional demand.
Domestic Scenario
Polymers: India’s polymer market growth enjoys high

correlation with the country’s GDP growth. In the last five years, the country’s per capita plastic consumption has outpaced its GDP growth, making India among the world’s fastest growing polymer markets with a five-year CAGR of
7.1% (2009-2014). Despite strong growth over the last few decades, the domestic market remains under-penetrated compared to other Asian developing countries.
In India, polymer demand continued to be healthy during FY 2014-15, also supported by lower absolute prices towards the end of the year. During FY 2014-15,
India’s polymer demand was higher by 6.7%. PP demand grew by 8.1% y-o-y with improved demand from raffia packaging, nonwoven, multi filament, automotive, hygiene applications and appliances sector. PE demand was higher by 6.3% due to firm demand from film packaging, moulded products (i.e. FMCG, pharma and food packaging), and paper/woven sacks lamination packaging sector. PVC domestic demand was higher by
5.4% with higher demand from pipe and fitting sector.
Overall, with improving business sentiment and a revival in investment cycle, demand is likely to see higher growth in the medium term.
Polyester and Fibre Intermediates: Feedstock fluctuations in the international markets and the steep drop in the latter part of the year led to cautious buying behaviour by the industry. In addition, severe cash crunch and longer cash cycles resulted in need-based buying. Overall

polyester demand increased by 7% during the year, led by Fully Drawn Yarn (FDY) and PET. Overall growth was constrained by high volatility of prices and reduced liquidity with customers.
FDY witnessed healthy growth from warp knitting segments, while PET witnessed stable growth owing to delayed monsoons during the first half. Shipments during the second half were limited on account of the price volatility and lean season.
Domestic cotton production increased during the seasonal year, owing to higher acreage, making India the largest producer globally. The high production has resulted in prices dropping by 20% during the year, as the exports to China also declined.
Indian polyester industry will be in advantageous position with growth of consumer demand and strong manufacturing base enabling India to serve as regional polyester manufacturing hub.
Elastomers

Indian butadiene demand grew by ~43% to 171 KTPA as against an installed capacity of 435 KTPA, making it a net exporter in the global markets. Domestic demand growth increase was primarily driven by additional capacities in downstream synthetic rubber plants.
India’s demand for PBR in 2014 is around 191 KT and is expected to grow at 8% annually in the medium term.
India is a net importer of PBR and is likely to remain an importer even after start-up of announced capacity addition in 2017-18. RIL has successfully commercialised its new PBR plant, effectively reducing imports and increasing its domestic market share.
India’s demand for SBR is estimated at 250 KT and is likely to grow at 6-8% annually in the medium term. India is currently a net importer of SBR. RIL has started 150 KTPA
SBR plant at Hazira and expects to stabilise the same in the coming months.

Operations and Financial performance
Financial performance*
FY 2014-15 FY 2014-15
(` in crore) ($ in billion)

Revenues
EBIT
EBIT (%)

96,804
8,291
8.6%

15.5
1.3

FY 2013-14
%
(` in crore) change
104,018 (6.9%)
8,403 (1.3%)
8.1%

*Consolidated basis

FY 2014-15 revenue from the Petrochemicals segment decreased by 6.9% y-o-y to ` 96,804 crore ($ 15.5 billion), reflecting lower product prices resulting from sharp decline in crude and feedstock prices. Petrochemicals segment
EBIT was marginally lower at ` 8,291 crore ($ 1.3 billion), as strong polymer deltas were offset by sharp decline in
PX deltas and weak PTA / MEG deltas. Petrochemicals EBIT

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margins were higher at 8.6% as product deltas held up well despite lower absolute product prices.
During the year, product prices were lower by around 8% on y-o-y basis. The steep decline witnessed during the second half of the year continued to weigh on the overall sentiments and markets remained cautious and highly sensitive to even minor moves in crude oil price.
The sharp meltdown in the global hydrocarbon prices last year impacted buyer’s behaviour, leading to destocking by downstream players. Stability in prices is expected to support demand revival. Continued lower band of energy prices should also be supportive of demand due to price elasticity. RIL’s overall petrochemicals production in India during
FY 2014-15 was 22 MMT.
Polymer production

(Production in KT)
PP
PE
PVC

FY 2014-15

2,685
969
649

FY 2013-14
2,805
1,018
671

RIL has on overall market share of 38% in the Indian
Polymer market. RIL is the world’s sixth largest producer of PP. During FY 2014-15, the Company produced
2.7 MMT of PP. RIL has a pre-eminent position in the domestic PP market with 58% share. During the year,
RIL achieved highest ever domestic market sales of over
2 MMT of PP. RIL produced total PE of 0.97 MMT during the year and has market shares of 18% in HDPE, 34% in
Linear Low Density Poly Ethylene (LLDPE) and 37% in Low
Density Poly Ethylene (LDPE). With 27% market share in the overall PE market, RIL is the leading PE producer in
India. RIL’s total PVC production was at 0.65 MMT and it has 27% market share in the domestic market. RIL placed significant volumes of PP in the international market while PE and PVC are largely sold in the domestic market.

routine maintenance and turnaround activities to increase productivity. With advance planning and inventory management, impact on external sales was minimal.
RIL also took a planned turnaround at its Nagothane manufacturing site. The cracker and some of the downstream units were shut for four weeks during the last quarter of the year.
Polyester production

(Production in KT)

FY 2014-15

PFY
PSF
PET

852
621
374

FY 2013-14
671
630
347

RIL’s polyester production during the year increased by
13% y-o-y with significant gains in filament yarn and
PET. Start-up of the new PFY plant at Silvassa has helped production gain and improvement in market share.
Overall market share increased to 37% from 34% with gains in filament yarns to 26% from 21% in the previous year. Fibre intermediates production

(Production in KT)

FY 2014-15

PX
PTA
MEG

2,169
2,074
635

FY 2013-14
1,989
2,045
675

RIL’s overall fibre intermediates production remained stable during the year. PX production was higher on a y-o-y basis as there was a planned turnaround in the previous year.
Elastomer / chemicals production

(Production in KT)

FY 2014-15

PBR
Benzene
LAB

101
688
168

FY 2013-14
81
714
164

PBR production increased by 25% on a y-o-y basis with the start-up of new plant at Hazira.

New Product Developments
RIL has continued to add products to its range of deliverables to the customers, thus upholding a spirit of innovation, excellence and better customer satisfaction.
Polymers: The PP business has carried forward its efforts

in acceptance and awareness of its pioneered effort
“Flexible Intermediate Bulk Container (FIBC)” for silage storage. In the process of continual improvement, RIL has conceptualised anti-rodent bags and laminated bags.
PP Plant at Jamnagar
RIL took a planned turnaround at its Hazira manufacturing site. This opportunity was utilised to carry out other

PP nonwoven crop-cover/ fruit-cover has been successfully tested on various fruits and vegetables like litchi, grapes, mango, brinjal, tomato, pomegranate. As a part of ‘Makein-India’ mission, RIL is providing inputs on specifications of

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PP Nonwoven Agro textiles to be included in BIS standards to encourage acceptance of domestically produced PP
Nonwoven and in-turn facilitate import-substitution.
Geo-synthetics are man-made products, used to stabilise terrain and solve civil engineering problems. Impact of geo-synthetics includes increase in service life of the structure, reduction in maintenance cost and conservation of natural resources.
RIL polyethylene team is working on concept promotion of flexible silos made up of multilayer PE films for food grain storage. These silos provide ease of handling, installation and cost effective storage systems against the constructed warehouses. These silos have huge potential in reducing the food grain wastage across the country.
Polyesters: Reliance is committed for a greener world and continuously strives to make products, which save natural resources and reduce carbon footprint. Reliance has introduced Recron Green Gold using recycled feedstock.

During the year, Reliance added various products in apparel fibre and yarn segment as;
Recron® Lite – Imparts better bounce, used for extralight dress materials
Recron® Lnlyk and Recron® Linen – Special textured and FDY for imparting linen like look and used for variety of fabrics
Recron® Sparkle – Additional shiny appearance for rugs, fancy yarn and hand knitting
Recron® Recro Bulk Sparkle – Additional bulk and shine for rugs, fancy yarn and hand knitting
Recron® Fancy Effect fibre – Small cut length fibres –
6mm,12mm,18mm and are used for fancy effect in yarns, fabric and garments
Reliance under its Recron Certified Product range has launched a variety of products as;
Sleep Tunes – India’s first music pillow with embedded speakers, which allows users to enjoy their favourite music while sleeping
Ergo Pillow – It is a unique combination of memory foam and micro fibre and provides an ergonomical sleep design

Capex and growth plans
RIL started phase-1 PTA capacity of 1150 KTPA and 650
KTPA of PET capacity at Dahej. Both these plants are expected to stabilise operations in the coming months and will be advantageously positioned to reap the benefits of integration.
RIL has successfully commissioned its new PBR plant. RIL has started 150 KTPA of SBR plant during the year which is expected to stabilise in the coming months. Additionally,
RIL has broken ground for its 100 KTPA butyl rubber facility in partnership with Sibur at Jamnagar. During the year,
RIL successfully debottlenecked PVC capacity at Dahej, adding 100 KTPA to PVC capacity.
Refinery Off-Gas Cracker (ROGC): India’s PE demand in
2014 was 3.8 MMT and expected to grow by 8-10% in the medium term. The market remains supply-constrained; higher domestic availability and new applications are expected to augment demand. To meet the increasing domestic demand, RIL is setting up a new 1.4 MMTPA ethylene cracker (ROGC) along with downstream PE capacity of 1 MMTPA at Jamnagar. The cracker will use refinery off gases as feedstock which will provide competitive cost advantage and feedstock flexibility to the petrochemicals business. The new ROGC cracker is also integrated with downstream MEG to have chain margin advantage of its in-house consumption in polyester chain.

The new cracker is likely to be among the world’s largest ethylene crackers and will secure the benefits of economies of scale. This is the first cracker based entirely on refinery off gases, leveraging the scale of RIL’s refining complex at
Jamnagar, and as such is not replicable. ROGC will have one of the largest ethylene derivative plants including swing polyethylene (with metallocene capability), LDPE and MEG.
Additionally, by virtue of integration with Company’s existing refineries at the same site, the plant will be in the top decile in terms of global cost competitiveness on an integrated basis and for all new capacity being built. Currently, ROGC project is in an advanced stage of execution. Renowned EPC companies with global

Reliance developed 2 litre PET bottles with pinch grip for mustard oil for export markets. Reliance has collaborated with one of the largest dairy producers in India to pioneer the introduction of PET bottles in the dairy segment.
Elastomers: In elastomers, development is considered

an essential growth factor. This was the stimulus behind setting up of world class Elastomer Customer Support
Centre (ECSC), as a platform to invite customers for collaborative efforts, and joint projects to develop new applications for synthetic rubber in Vadodara.

1.4 MMTPA refinery off-gas cracker to be among the world’s largest ethylene crackers

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Management’s Discussion and Analysis

reach including Fluor, Bechtel, Technip, Tecnimont,
Foster Wheeler, Linde, Jacobs and Aker are executing engineering and construction from various locations.
Majority of engineering deliverables for procurement and construction have been issued. RIL is also undertaking debottlenecking activities for PP at Jamnagar which is likely to augment capacity by 60 KTPA.

Market environment and outlook

As a part of providing feedstock flexibility and long-term supply security to existing crackers, RIL initiated projects for imports of ethane from the US. This will ensure longterm feedstock competitiveness. RIL is implementing a project to source 1.5 MMTPA of Ethane from US to feed its crackers in India. It has executed storage and capacity agreements for liquefaction and export of ethane with a
North American Terminal. RIL has ordered six state-of-theart Very Large Ethane Carriers (VLECs) which will be the largest vessels ever built in the world. For construction supervision, RIL has entered into agreements with one of the world’s largest and reputed shipping companies
Mitsui O.S.K. Lines, Ltd (MOL).The ships are expected to be delivered starting last quarter of 2016.

For the US gas markets, FY 2014-15 started with strong gas prices on the strength of record low gas inventories.
This was followed by a milder-than-expected summer and continuously increasing production levels resulting in record injection to the storage. This period also witnessed new infrastructure coming on line, particularly in Marcellus and Utica region, and thus, the US gas production reached a record high of 73.5 BCF/D in December 2014, a 5 BCF/D y-o-y increase. This resulted in softening of gas prices towards the end of the year. However, the long-term fundamentals of gas market remain intact. Over 22 BCF/D of take-away capacities are being planned that would help gas off-take. Gulf Coast demand remains strong and is expected to go further up with commencement of
Liquefied Natural Gas (LNG) exports and other industrial facilities, along with higher gas export to Mexico. In addition, capex cut by producers, will also cut some of the associated gas production. These are likely to have favourable impact on long term gas prices.

MOL will also operate and manage the vessels after they built and deliver. Ethane import from the US will start from the first quarter of 2017.
RIL’s petrochemical capacity additions are aimed at serving growing Indian consumption and will further strengthen its leadership position in the large growing domestic market.
Post completion of petrochemical expansion plans, RIL is likely to be among the top 10 global petrochemical producers by capacity and earnings potential.
The expansions are world-scale and use state-of-theart technology, which ensures advantageous cost of operations alongside savings in packing and logistic costs.
Being strategically located close to the consumption centres, allows for easy access and benefits the targeted markets with an economical and reliable source of raw materials. OIL AND GAS EXPLORATION AND PRODUCTION
Reliance’s upstream business encompasses the complete chain of activity from acquisition to exploration, development and production of hydrocarbons. Reliance has an advantageous position in offshore (deep-water) capabilities, coupled with the knowledge of operations in unconventional areas such as CBM and shale gas. More specifically it:
Has strong offshore capabilities in India
Has a strategic partnership with BP in the domestic upstream business
Can leverage existing infrastructure, knowledge and experience Has achieved materiality in the unconventional shale gas business
Has a balanced portfolio with growth potential

With the fall in oil prices, many US producers have responded to the situation by cutting back on drilling activity and rig counts have dropped by nearly 50%, since their peak in October 2014. The fall in rig count will, however, start impacting the US oil production only from the second half of 2015.

According to research estimates, nearly 3 billion barrels of global oil reserves remain challenged if oil price remains below $ 70/bbl. The projects most at risk are in oil sands, deep water, ultra-deep water, arctic and some shale oil plays. Estimates of global exploration and production capital expenditure show a fall from $ 870 billion in 2014 to nearly $ 680 billion in 2015, about 22% decline. The steepest fall is being experienced in North America, where the capital expenditure programme has fallen by 34%.
Of the $ 680 billion spend on upstream development, IHS
CERA estimates that offshore capex plans will be lower by
10% and are likely to touch $ 180 billion globally by 2015.
Deep and ultra-deep projects account for nearly a 22% of total global costs and deep-water day rates are declining with lower fleet utilisation levels and idle rigs. Typically, there is a 15-18 months lag before costs fully respond.
The share of gas in India’s energy mix as per the BP statistical review is 8%. This is modest by international norms since the global average mix is about 23%. India’s future gas demand is expected to touch 224 Million
Metric Standard Cubic Meter per Day (MMSCMD) by 2020.
(Source: IEA’s WEO 2014 publication)
In October, 2014 the Government notified the New
Domestic Natural Gas Price Guidelines, 2014. The new pricing guideline applicable to most of the natural gas produced in India uses a formula consisting of US Henry
Hub, UK National Balancing Point, Canadian Alberta and
Russian gas prices to arrive at the domestic gas price.

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
Based on this formula, domestic gas prices in the period from November 2014 to March 2015 were set at $ 5.05/MMBTU on Gross Calorific Value basis.

Business and Competitive position
The Company’s assets include KG-D6, Panna-Mukta, Tapti and two CBM blocks in addition to several domestic and international blocks. RIL also has three joint ventures in North American shale plays with Pioneer Natural Resources,
Chevron and Carrizo.
Oil & Gas Portfolio

Block

Country

Partners

KG-DWN-98/3

India

NIKO - 10 %, BP - 30%

Panna Mukta

India

BG - 30% ; ONGC - 40%

30%

2,98,256

Mid and South Tapti

India

BG - 30% ; ONGC - 40%

30%

3,63,492

RIL Stake

JV Acreage (in acres)

Conventional*
60%

5,62,906

Other Blocks
NEC-OSN-97/2

India

NIKO - 10 %, BP - 30%

60%

10,23,016

CY-DWN-2001/2

India

BP - 30%

70%

16,95,142

CB-ONN-2003/1

India

BP - 30%

70%

1,17,622

GS-OSN-2000/1

India

Hardy - 10 %

90%

1,48,263

Block 34

Yemen

Hood Energy - 30%

70%

17,33,691

Block 37

Yemen

Hood Energy - 30%

70%

17,03,544

Block 39

Peru

Perenco - 55%, PetroVietnam -35%

10%

18,41,182

M17

Myanmar

UNRD 4%

96%

35,01,976

M18

Myanmar

UNRD 4%

96%

32,92,159

International

CBM*
SP(East)-CBM-2001/1

India

-

100%

1,22,317

SP(West)-CBM-2001/1

India

-

100%

1,23,552

Shale
Pioneer JV

USA

Pioneer – 46.4%, Newpek – 8.6%

45%

1,55,767

Chevron JV

USA

Chevron – 60%

40%

2,30,822

Carrizo JV

USA

Carrizo – 40%

60%

48,393

* Conventional and CBM acreage converted into acres using 1sq. km. = 247.1053 acres

During the year, RIL opted to relinquish two blocks KGDWN-2003/1 and CY-PR-DWN-2001/3 as part of the ongoing effort to high grade its upstream asset portfolio.
In KG-DWN-2003/1 further progress in petroleum operations were impeded by defence restrictions imposed in October 2012. Since then the JV had continued to seek unrestricted access to the block without success. RIL and its JV partners finally decided to relinquish the block in line with Government’s policy. The decision was approved by the Management Committee (MC) in the meeting held in December 2014. CY-PR-DWN-2001/3 was relinquished as prospectivity was not commensurate with the high geological risk involved.

Operations and Financial performance
Financial performance- Domestic
FY 2014-15

FY 2014-15

(` in crore) ($ in billion)
Revenues
EBIT
EBIT (%)

5,507
1,250
22.7%

0.9
0.2

FY 2013-14
%
(` in crore) change
6,068 (9.2%)
1,626 (23.1%)
26.8%

Revenues for the domestic oil and gas operations for the year were at ` 5,507 crore, a decline of 9.2%. This was largely on account of decline in production and lower crude oil price realisation. EBIT for the year declined by
23.1% on y-o-y basis to ` 1,250 crore on account of the lower realisations with no commensurate reduction in cost.

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Production Performance

Units of measurement KG-D6
Oil
Gas
Condensate
Panna- Mukta
Oil
Gas
Tapti
Gas
Condensate

MMBBL
BCF

MMBBL
MMBBL
BCF
BCF

MMBBL

FY 2014-15

FY 2013-14

2.0
157.6
0.3

2.0
178.3
0.3

7.2
70.7

7.4
65.4

14.3
0.2

27.3
0.3

RIL’s share of produciton in India during the FY 2014-15 was 142 BCFe.
KG-D6 gas production declined by 12% for the year to
157.6 BCF. Fall in production was mainly due to natural decline in the fields coupled with partial shutdown of
MA field due to Hudhud cyclone and the fire in EastWest pipeline during the year. This was partly offset by incremental production from side tracks in well MA6H and
MA5H.

RIL signed a MoU with Petroleos Mexicanos (PEMEX) to co-operate for assessment of potential upstream oil and gas business opportunities in Mexico and jointly evaluate value-added opportunities in international markets. North American Shale Gas Operations
Background

The shale gas industry in the US has emerged as one of the most cost competitive and agile among upstream basins using state-of-the-art technology to continuously improve productivity and reduce cost. As a result, the sector has consistently seen the entry of new players and production has continued to grow at a steady pace. North America remains market friendly with cutting-edge technology and nimbleness to respond to market challenges with innovative technical and business solutions.
Reliance has partnerships with strong operators who have a proven track record and so far has invested $ 7.9 billion of Capex in its joint ventures with Pioneer Natural
Resources, Carrizo and Chevron including investments in
EFS midstream.
Operations and financial performance

Financial Performance
In FY 2014-15, Panna-Mukta fields produced 7.2 MMBBL of crude, a reduction of 2 % on y-o-y basis and 70.7 BCF of natural gas, a growth of 8.1% on y-o-y basis. The increase in production was on account of incremental gains from existing wells and effective well intervention activities.
This was partly offset by a decrease in production due to unplanned shutdowns during the year, including the shutdown in July 2014 on account of integrity issue with
South Bassein Hazira Trunk (SBHT) coupled with natural decline. Gas production at the Tapti fields declined by 48% on a y-o-y basis. The decrease is due to natural decline, and field is progressing towards cessation of production.

International business
Reliance’s E&P strategy is to balance the portfolio by expanding its international asset base and investing in regimes having attractive internationally competitive terms. A number of opportunities are under review.
Updates:

RIL and Myanma Oil & Gas Enterprise (MOGE), an enterprise of the Government of Myanmar, have signed production sharing contracts for two offshore blocks (M17 and M18). RIL won both the offshore blocks, after its bids in Myanmar offshore block bidding round – 2013 were declared successful by the
Ministry of Energy (MoE) of the Republic of the Union of Myanmar.

$ in million
CY 2014

Revenues
EBIT
EBIT (%)

984
402
40.9%

CY 2013
819
295
36.0%

% change
20.1%
36.3%

Reliance’s shale gas business continued on its growth trajectory with revenues and EBIT increasing 20.1% and 36.3%, respectively, despite a challenging price environment. Reliance’s share of net sales volume was at 168 BCFe, compared to 131 BCFe in 2013. EBITDA of
$775.1 million in 2014 was up 26% y-o-y. Business gained materiality in terms of production, revenue and EBITDA.
The shale gas business effectively managed the sharp downturn in commodity prices, and high gas differentials, particularly in Marcellus region. WTI oil prices dropped
40% from $ 90/bbl at the beginning of the year to
$ 53/bbl by the end of the year. Henry Hub gas prices remained higher at $ 4.43/MMBTU during CY 2014, compared to the average of $ 3.65/MMBTU in CY 2013, though declined during the year’s second half.
Operationally, the business continued its strong performance during CY 2014, with production reaching record levels across JVs. Reliance’s share of production in
US shale operations was 195 BCFe. Gross JV production averaged at ~1.2 BCFe/d, reflecting a growth of 26% over the levels achieved in CY 2013. Development growth momentum remained strong and performance of its wells continued to be encouraging. All three

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JVs successfully implemented various value creation initiatives that resulted in increased well count, improved well productivity and reduced well costs. These initiatives significantly add to the long-term profitability and sustainability of the business. The business has reached an overall development maturity (with a significant part of the acreages held by production) and this provides adequate investment flexibility in managing the low price environment through prioritising well capex in the most prolific areas.

In 2014, the joint ventures drilled 211 wells and put 225 wells on production, taking the cumulative number of producing wells to 838 at the end of the year.
Improvement in efficiencies, improving well recovery and cost reductions in development activities for 2014 over the previous year was a key success area during the year.

Reliance’s share in gross JV production
250
200
195

Gross JV Production average at

~1.2 BCFe/d reflecting a growth of 26% over CY 2013

(BCFe)

64

150

154

100

101

50
0

38
2011

Eagle Ford shale remains one of the most competitive liquid shale plays in the US and is better positioned to remain competitive even in a volatile price environment.
Pioneer JV continued implementation of better completion technologies, which has demonstrated improved well performance. Similarly, down spacing efforts progressed well and is improving the potential well count for the JV. Further, the Pioneer JV successfully decreased Drilling & Completion (D&C) costs through initiatives like use of 2-string casing design and efficient pad operations. This improved efficiency, greatly helped managing the depressed oil price environment.
The Marcellus shale area continued to see sustained growth in production with some of the best-in-class gas wells, and continued to contribute significantly to the gas production growth of the US. This growth also resulted in some pricing pressure leading to increased gas price differentials. Carrizo and Chevron, the two Marcellus
JVs, remained focused on maintaining competitive cost structure and worked on reducing well costs and lease operating expenses.
All three JVs actively pursued opex and capex reduction initiatives in the current commodity price downturn.
The overall capex during the year was $ 1.2 billion, lower by 14% over the previous year on account of moderated development pace at Marcellus, and cost efficiency achieved in drilling and completion activities across the
JVs. With NEPA initial development maturing there was slow capex momentum. Cumulative capex across all
JVs including investment in EFS Midstream LLC stood at $ 7.9 billion. Substantial part of Pioneer JV capex was met through cash from JV operations, while Carrizo JV was cash positive from operations in 2014. Chevron JV continued to account for most of the ongoing capex and funding needs.

2012

2013

2014

27% Growth y-o-y
The Reliance-Shale Gas Operations (Reliance-SGO) share of gross JV production was 195 BCFe in 2014, reflecting a growth of about 27% over 2013 production.
In CY 2014, year-end proved reserves stood at 2.95
Trillion Cubic Feet equivalent (TCFe) for Reliance-SGO reflecting 11% growth in reserve accretion over CY 2013.
These proved reserves are about 33% of total resource base. Reserves were positively impacted by benefits of additional well locations in Pioneer and Carrizo joint ventures, marking development upside.
Pioneer Upstream JV
JV successfully pursued further high-value growth.
Producing well count increased from 371 at year-end 2013 to 499 at year-end 2014, which was a major factor in the growth in production volumes. The JV produced 250 BCFe of products through the year (gross) and achieved net sales of 98.3 BCFe. The share of liquids increased to 68% in 2014, reflecting growth in activity in oil-rich acreage.
Ongoing development thrust on infill drilling and down spaced wells in Lower Eagle Ford and Middle Eagle Ford provided for additional potential locations leading to growth in proved reserves by 12% at year-end 2014.
Chevron Upstream JV
The JV production stood at 122 BCFe, reflecting growth of over 25% from the previous year and achieved net sales of 42.2 BCFe. Growth of 13% also witnessed in proved reserves from year-end 2013 to year-end 2014. JV is pursuing paced development in view of the challenging pricing environment, while working on various operational and cost efficiency improvement initiatives to maximise well recovery and decrease well cost.

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Carrizo Upstream JV
In view of a challenging price differential environment,
Carrizo JV deferred bringing some wells online as per original schedule and also decided to curtail production to produce only at optimal levels (for operational considerations). The JV production of 56 BCFe reflected a
39% increase over the previous year with net sales volume of 27.1 BCFe for 2014. Carrizo JV opted for deferment of drilling activities to CY 2016, considering the price environment. While year-end 2014 reserves were largely unchanged, Carrizo added potential well locations due to
Upper Marcellus development plan down spacing.

Capex and growth plans
KG-D6

Detailed engineering for Onshore Terminal (OT) modification works required to handle multiple pressure regimes completed; construction work-inprogress
Geo-mechanical (compaction studies have been completed

and

subsidence)

Well completion design study at final stages
Procurement activities advanced for subsea long leads and installation contract for facilities
Procurement activities advanced for rig, tangibles and services
There is continued engagement with suppliers and contractors in order to optimise the projects in light of falling, but lagged supply chain response.

Appraisal of MJ1 discovery

RIL along with JV partners made a significant hydrocarbon discovery in FY 2013-14, called ‘D-55’ in well MJ1 drilled in the block KG-D6 situated in the Krishna Godavari basin.
As a part of the appraisal programme, three appraisal wells have been drilled to date, of which two appraisal wells were drilled in FY 2014-15. All the appraisal wells have provided vital information on the extent and potential of the reservoir.
In addition, enhanced imaging for reservoir characterisation is underway and the first phase of conceptual engineering has been completed. This will be followed by further engineering to develop a robust scheme of exploitation. Based on these appraisal efforts the JV expects to submit the Declaration of Commerciality
(DoC) in the second half of FY 2015-16.

Production augmentation efforts in existing producing fields (D1, D3 and D26)

D1-D3 field continues to produce from eight wells.
To maximise the recovery from the field, well intervention jobs were planned for execution in phases. In the initial phase, Water Shut-off (WSO) jobs in three wells were attempted. Although, the outcome of these jobs did not meet expectations, the data acquired from these wells and the lessons learnt have been incorporated in designing the side track jobs in the next phase of well intervention jobs
Reservoir top-set drilling of a substitute well has been completed, and further drilling, completions and connections are planned to be undertaken during FY
2015-16. Besides, side track activities are planned and well options have been prioritised to undertake these jobs The Field Development Plan (FDP) for the R-Cluster discoveries was submitted in January 2013 and it was approved by the MC in August 2013. Since the approval of the FDP, the KG-D6 JV has made significant progress towards development of the discovery. This includes:

Meanwhile, as part of the Onshore Terminal Booster
Compressor (OTBC) project, two compressors have been successfully commissioned, with the third compressor expected to be commissioned in first half of FY 2015-16. As an outcome of this effort, augmentation of production in terms of improved recovery from the field is expected to be achieved

Front End Engineering Design (FEED) for facilities completed In D26 field, well MA6H and MA5H side track have been completed successfully and put on production

R-Cluster Development

Panna-Mukta

The Panna-Mukta JV has successfully completed 20 years of operation and is entering into the last five years of its contract period. The field is still contributing significantly to the E&P revenue and profitability. During the year, the following activities were carried out to sustain production from this field:
Intermediate stage compressor piping modification to enhance gas processing capability
Gas dehydration units at Gadimoga onshore terminal

Successful migration of Panna emergency shutdown system from pneumatic system to a more reliable electronic shutdown system
PMT JV is also in the process of expanding the existing gas lift pipeline network to enhance oil production

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Mobilisation of rig for work-over of 15 wells (of which five wells completed) and for drilling of six development wells at Mukta-B
Mukta-B development project is at an advanced stage of completion. Scheduled completion of facilities is expected in the first quarter of FY 2015-16. Drilling of six development wells is scheduled to commence during the first quarter of FY 2015-16 and first oil is expected in the subsequent quarter.
Tapti

Tapti JV production level has steadily declined this year as it is nearing the end of its economic life. The field is currently producing around 1 MMSCMD of gas. The cessation of production is likely to happen during the second half of FY 2015-16.
In line with the production sharing contract, RIL along with its partners have issued an abandonment notice to the Government in December 2013 and started allocating funds for site restoration activity.
Post cessation of production, ONGC as a Government nominee will take over the process facilities and the export pipelines for its Daman development project. As part of the site restoration of Tapti block, Tapti JV will commence necessary decommissioning and abandonment activities
(the first of its kind in India’s E&P industry) for the balance of the facilities in the coming year.
Other NELP Blocks
NEC-25

No significant development has taken place in this block during the year. RIL continues to wait for the approval of its Integrated Block Development Plan for the discoveries
(D32, D40) and approval of proposal for conducting Drill
Stem Testing (DST) for D32 and D40 from the regulator.
CY-D5

Post notification of discovery of S1 well (D56), the appraisal programme has been reviewed by MC. The period of appraisal programme is valid up to August
2016. Subsequent to completion of exploration phase
II, RIL along with its partner has opted not to enter the phase-III of exploration and also decided not to submit a development plan for discovery D35, for which the DoC has been reviewed earlier.
CB-10

The block was awarded under the NELP-V licensing round and is the only conventional on-land block operated by
RIL. Post completion of phase-1 of the exploration period, wherein RIL made eight discoveries out of 18 wells drilled in this block, the Government has approved RIL and its partner to enter into phase-II of the exploration in January
2015. RIL has extensive plans towards drilling to explore and augment additional resources.

During the year, the DoC of eight discoveries was reviewed by the MC. RIL along with its JV partner is actively engaged in preparation of development plan for submission by mid of FY 2015-16.
CBM (Sohagpur East and Sohagpur West)
Development Project

Based on extensive exploration activity, the development plan was submitted to DGH for both blocks and approved by DGH in November 2007. The development plan envisages 1,000 wells to be executed in a phased manner over the contract period.
Development activities have commenced in the two
CBM blocks (Sohagpur East and West) with all requisite approvals required for the development stage in place.
As a part of the project scope, RIL is drilling more than 200 wells and setting up two gas gathering stations and eight water gathering stations in phase-I. The land acquisition for phase-I wells and facilities is near completion. Out of phase-I scope, RIL has drilled 168 surface holes, 153 production holes and completed hydro fracturing jobs for 120 wells. Detailed engineering and procurement for sub-surface and surface facilities are completed.
Installation and erection of most of the equipment is nearing completion. Installation of well-site facilities is completed for two trunk lines. Laying of gas gathering and water gathering network is under progress. The first gas production is expected in the second half of FY 2015-16.
Shahdol – Phulpur gas pipeline project

Reliance Gas Pipeline Limited, a subsidiary of RIL, is building a natural gas pipeline from Shahdol in Madhya
Pradesh to Phulpur in Uttar Pradesh (hook-up point with
GAIL’s HVJ pipeline), to transport gas from its CBM blocks.
Land acquisition has been completed for all critical installations. Right to Use (RoU) for 261 km out of 302 km is handed over to pipeline construction contractors.
Basic engineering (FEED) and detailed engineering are completed. Ordering for all long lead and other items has been completed. Overall project progress of 72% was achieved by the year end and RIL is fully geared up for completing the pipeline work by second half of
FY 2015-16.

Update on domestic gas pricing, arbitration and other legal issues
Domestic Gas Pricing

In October 2013, Cabinet Committee on Economic
Affairs (CCEA) approved a new gas pricing formula for a period of five years based on the recommendation of the
Rangarajan Committee Report on ‘The Production Sharing
Contract Mechanism in Petroleum Industry’. The Domestic
Natural Gas Pricing Guideline, 2014 were notified by the
Government on 10th January, 2014. The price under the

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new formula was to be applicable from 1st April, 2014, including the gas produced from block KG-DWN-98/3
(’KG-D6 Block’) where the previous approved price expired on 31st March, 2014. The gas price under these guidelines was to be notified by the Government by March 2014.
There was continued delay on the part of the Government in notifying the price in accordance with the approved formula. RIL, BP and NIKO issued a Notice of Arbitration on 9th May, 2014 to the Government of India, seeking the implementation of the ‘Domestic Natural Gas
Pricing Guideline 2014’ notified on 10th January, 2014, while preserving their rights to claim an arms-length market price as required under the Production Sharing
Contract (PSC).
On 18th October, 2014, in supersession of its earlier notification of 10th January, 2014, the Government notified the New Domestic Natural Gas Price Guidelines
2014. In view of RIL, the methodology used for valuation of gas under these guidelines, does not reflect true armslength market price of gas in India as required under the production sharing contract signed with the Government.
Without prejudice to any of its rights and contentions, RIL is complying with the guidelines.
KG-D6 Arbitration and other legal issues

RIL sought Government’s confirmation that no action was being planned following news reports that the
Government may curtail the Company’s entitlement to recover its costs on the basis of there being a shortfall in production from levels specified in the development plan. According to the Company the PSC permits full ‘cost recovery’ of its costs of exploration, development and production from the value of petroleum produced from the KG-D6 Block.
RIL on behalf of all contractor constituents - namely Niko
(NECO) Limited (NIKO) and BP Exploration Alpha Limited
(‘BP‘) (together, the ’Claimants‘) served an arbitration notice on the Government on 23rd November, 2011
(‘Cost Recovery Arbitration‘). Both the Claimants and the Government have appointed arbitrators and on 23rd
September, 2014, the Supreme Court nominated Hon’ble
Michael Kirby AC CMG as the presiding third arbitrator.
Justice Kirby is corresponding with the parties.
Three public interest litigations have been filed before the
Supreme Court of India against the Company in relation to the production sharing contract for KG-D6 Block seeking substantially similar reliefs in the nature of; (i) disallowance of cost recovery under the production sharing contract for
KG-D6 Block; (ii) quashing the Government’s decision to approve the certain gas price formula, and (iii) termination of production sharing contract for KG-D6 Block on the basis that the Company has not achieved the committed production. In the views of both the Company and the
Government, point (ii) in the public interest litigation no

longer survives in view of the revised pricing guidelines issued by the government on 1st November, 2014 and being a matter of arbitration. Petitioners have also requested the
Supreme Court to stay the Cost Recovery Arbitration. The
Company has submitted that the underlying issues which have been flagged by the Petitioners are already subject matter of Cost Recovery Arbitration and the Gas Price
Arbitration and the same need to be heard by the arbitral tribunal. PMT Arbitration

In December 2010, the Company and BG Exploration and Production India Limited (together, the ’Claimants‘) referred a number of disputes, differences and claims arising under two Production Sharing Contracts entered into in 1994 among the Claimants, Oil & Natural Gas
Corporation Limited (ONCG) and the Government (the
’PSCs‘) to arbitration. The disputes relate to, among other things, the limits of cost recovery, profit sharing and audit and accounting provisions of the PSCs. The value of the Claimants’ claims exceeds $ 500 million.
The Government’s defence dated 31st January 2012 raised certain jurisdictional objections and asserted a number of substantial counterclaims, including claims for underpayment of profits and failure to complete agreed work programmes.
The parties agreed by consent that the juridical seat of the arbitration would be London, England.
Following an initial merits hearing in May 2012, the
Tribunal passed a number of final partial awards, largely in the Claimants’ favour. The Government challenged the
Tribunal’s awards/determinations under Part I of the Indian
Arbitration and Conciliation Act 1996 before the Hon’ble
Delhi High Court. These challenges were ultimately dismissed after the Claimants prevailed in a Special Leave
Petition (SLP) before the Hon’ble Supreme Court on 28th
May 2014. The Government filed a Review Petition before the Supreme Court against this judgement, which was unsuccessful, and also filed a Curative Petition before the
Supreme Court seeking reconsideration of the judgment which was also dismissed. ONGC, another constituent of Contractor under the PSCs but is not a party to the arbitration (as ONGC was directed by the Government of India at the inception to be bound by any award and not to participate in the arbitration) has now filed an intervention application in the disposed off Government
SLP on the basis that there are certain factual and legal errors in the judgement and ONGC needs to present its position before the court. The matter is presently subjudice. Government has filed another SLP, copy of which is yet to be served upon the Company.
The Tribunal is yet to set a date to hear the parties’ closing submissions, which was deferred due to the illness of
Government nominated Arbitrator.

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
Yemen Arbitration

Considering the deteriorating security situation in
Yemen, consortium has declared Force Majeure thereby suspending its obligations under the PSAs for the
Yemen blocks 34 and 37. RIL and Reliance Exploration
& Production DMCC have obtained injunction from
Hon’ble Bombay High Court for restraining bankers from honouring any demand of Yemen Government under the
LCs during Force Majeure period and have also initiated
Arbitration proceedings against Yemen Government under the terms of the PSAs.

RETAIL BUSINESS
Market environment and outlook
Twenty-first century India reflects the potential to withstand challenges and emerge as a significant contributor to the global economy. Aspirations and capabilities of over a billion people are creating a huge market for both domestic and global investment.
India is the world’s fifth largest retail market (Source:
Retailing-Sector-Analysis-Report by Equity Master
November 2014). There are several favourable factors at an interplay, which are driving consumption boom in the
Indian market. Favourable demographics, urbanisation and rising education levels are affecting growth in incomes, and increasing spending power is translating further into increasing household consumption. As incomes rise, the shape of the country’s income pyramid is also getting transformed. The cascading effect of wealthier households, wanting to live an aspirational lifestyle would further drive India’s consumption boom.
Overall India’s retail business is projected to nearly double to $ 1 trillion by 2020 from $ 600 billion in 2015. The retail market is expected to grow by 12% in line with historical trends. (Source: Retail 2020: Retrospect, Reinvent, Rewrite by BCG and RAI, 2015)
Modern trade is expected to grow three times to $ 180 billion by 2020 from $ 60 billion in 2015. Traditional trade is projected to grow at 10% annually, while modern trade is projected to grow at almost twice this pace.
India’s e-commerce market is expected to grow exponentially over the next five years. Internet users are expected to increase three times from ~200 million in 2014 to ~600 million by 2020, due to increased proliferation of smartphones, lower cost of connectivity and improved quality and expanded reach in lower tier cities.
Even though, India continues on its current high-growth path for the long term, the economy is prone to headwinds in the short run. The growth path began slowing down in the last few years, because of low level of macro-economic activity, caused by high interest rates, rising inflation and investor pessimism.

Amid escalating food prices, high borrowing rates and marginal real wage growth, consumers tend to postpone discretionary spend.
Going forward, the Indian economy is expected to maintain its growth momentum aided by stronger growth enabling factors like stress on improved governance, reforms towards more competitive and market oriented policies, restructuring of welfare measures aimed at improving end level benefits.
India’s organised retail would continue to surge as customers look for an aspirational lifestyle, and are willing to pay for superior shopping experience and better quality products at attractive prices.

Retail business and competitive position
Operating strategy

Reliance Retail is the retail initiative of the group and is central to Reliance’s consumer facing businesses. Reliance
Retail leads group’s efforts in enabling inclusion, growth, opportunity and building sustainable societal value for millions of Indians.
Leadership: Over the years, Reliance Retail has aimed to create an operating model that can provide scalability and sustainable value. In its short but meaningful journey, it has attained leadership position in key format sectors. It continues to make investments in building retail infrastructure that is aimed at improving the shopping experience for millions of consumers and improving the lives of kiranas and small shopkeepers.
Innovation: The intrinsic strategy of Reliance Retail remains in its ability to respond to evolving consumer demands and provide innovative products and services that enhance their shopping experience.
It has embraced technology to innovate customer experience in the stores. 3D rendering of Mock
Shop Planogram for in-store execution, analytics to slice and dice millions of transactions to understand what customers buy and how their experience can be further improved, introduction of innovative merchandise through own brands and ‘Reliance
One’ loyalty programme across multiple formats are examples of innovation and uniqueness which give
Reliance Retail a competitive advantage.
Operational Excellence: Reliance Retail is committed to achieving the highest levels of operating efficiencies and effectiveness across all business activities, both customer facing and internal.
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Sector overview
Reliance Retail operates in five core format sectors viz.,
Value Formats and others, Fashion and Lifestyle, Digital,
Brands and Jewellery.
Value formats and others

Food and grocery constitutes the largest category in the consumption basket and is estimated at around
60% of consumer spending (Source: Deloitte – Indian
Retail Market Opening More Doors, January 2013). The penetration of organised retail is among the lowest in this category, which creates an unprecedented opportunity for growth of modern retail.
Value formats offer a comprehensive range of products ranging from fresh produce, dairy, staples, processed food, food/non-food FMCG products and much more to delight customers. Value formats operate the largest chain of full service convenience stores, supermarkets and hypermarkets on a highly integrated supply chain model.
The linkages with the farm has brought about transformational changes in the quality of life of farmers, also enhancing the quality of produce, reducing wastage by shortening the time to move fresh produce and reducing intermediaries in the value chain, thereby benefiting all.
Modern grocery retail has evolved in India and so have the customers. To remain relevant to weekly and monthly shopping missions of a household, value formats have successfully maintained a fine balance of serving local tastes by offering small brands, as well as national and international brands.
Value formats have been focusing on own label products that stand true to the tag-line of ‘Trusted Quality,
Reliance Price’. Several new products and categories were added to the strong own label portfolio. During the year, the business recorded a participation of up to 25% from own label brands in key categories, such as Home
Personal Care and Dairy. With a broad selection of own label products, complemented by well-known brands, value formats optimally meet the diverse needs of Indian consumers. Value formats also launched the e-commerce channel through www.reliancefreshdirect.com. The site has received overwhelming response and is still under pilot.
The online channel provides the convenience of delivery of fresh produce, dairy, packaged food and much more at the door step.
Reliance Fresh has been included in the list of ‘Most
Trusted’ service brands in India by Brand Equity,
The Economic Times and continues to improve its position year after year. This represents the faith of consumers in patronising the chain, which continues to remain as India’s largest grocery retailer.

Traditional retail is characterised by the presence of over
12 million kirana shops in the country. These kirana shops operate their retail business on a fragmented distribution network, with presence of a number of intermediaries.
Reliance Market, the wholesale cash-and-carry format aims at supporting their growth and providing them with a modern distribution system.
Reliance Market serves traditional kiranas, hotel, restaurant and catering (HORECA), small and medium institutions, thereby generating sustained social value.
Reliance Market serves deliveries to kiranas to ensure that they focus on their business, while it empowers them with the right merchandise on a timely basis. In a short duration, thousands of kiranas have benefited from this programme and the business continues to enroll and engage with newer kirana members each day.
Reliance Market has established leadership in wholesale cash-and-carry segment in the country with 43 operational stores and enjoys patronage of more than 1.5 million registered members.
Fashion and lifestyle

India’s apparel market is worth around ` 2.3 lakh crore
(Source: Deloitte – Indian Retail Market Opening More
Doors, January 2013), of which the organised sector accounts for 24% of the overall pie. The entire market is growing at a CAGR of 9% with women’s wear and kids’ wear being the fastest growing categories.

Reliance Trends Store
With rising disposable income, exposure to western broadcast media, access to better education and younger demographics, the fashion and lifestyle sector is poised for robust growth.
Reliance Trends, the apparel and accessories specialty format, is a fashion destination for young at heart, value conscious style seeking men and women. The format offers an extensive range of own labels, apart from other national and international brands. Over the years, it has successfully democratised fashion by making ‘fast fashion’ accessible to the young and aspirational customers.

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Annual Report 2014-15

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
Reliance Trends sells over 1,50,000 pieces of garments per day across its stores with a portfolio of over 20 private label brands (targeting different customer segments), which account for 70% of its turnover. Through its private brands,
Trends has been able to establish a unique differentiated offering to its customers.
Reliance Trends is the largest apparel retailer in the country with largest geographical footprint. Reliance Trends has continued on its growth trajectory in the period and has opened 45 new stores taking the total store count to 200 across 100 cities.
With an eye on offering the most fashionable clothes to its customers, Reliance Trends operates a state-of-the-art design studio, fully integrated with a sampling and quality testing facility. With quality and comfort in mind, Trends offers to its customer’s affordable fashion that is designed to meet everyday fashion desires.
Trends continues to leverage its international sourcing capabilities to source the best of fabric and product technology from around the world. International sourcing offices as well as its existing regional sourcing offices across India aid in converting the fabric to the finished product at best prices, while ensuring the highest adherence to quality.

Digital

Consumer Durables and Information Technology (CDIT) is one of the major categories in the consumption basket that reflects the aspirational lifestyle of India’s consumers.
The sector has been hit by industry slowdown. To add to the pain, high interest rates have compelled consumers to postpone spending on large ticket items to restrict their family budgets.
The sluggish consumption pattern of digital products is expected to be a transient phenomenon, as younger demographic population supported by new job creation and aspirational lifestyle is likely to bring back industry demand. Unabated by the industry impact, Reliance Retail continued its growth in the digital sector during the year. Reliance Digital operates multiple formats, offering consumer electronics, home appliances, IT and telecom products. Reliance Digital, the CDIT products retailing format, has established itself as a complete destination store that offers comprehensive assortment of top brands, a large selection of innovative products, attractive pricing and best-in-class service.

Reliance Footprint, the specialty footwear format is offering footwear and accessories through a range of own, national and international brands. The format attained a milestone of opening 200th store during the year, making it a leading national multi-brand footwear chain. Own brands contribute 15% of turnover and gives it a competitive edge, so that the format is able to offer superior designed products at great value.
Payless ShoeSource, which runs the largest family footwear store chain in western hemisphere was launched in India in an exclusive partnership with Reliance Retail during the year. In a short period, the chain has expanded to over 14 stores and is witnessing great enthusiasm from customers for innovative designs at affordable prices.
The successful partnership with Marks & Spencer (M&S) continued to grow with strong same store sales growth, as well as roll out of new stores during the year. During the year, the business opened 12 stores, including launching the first M&S standalone beauty and lingerie store and men’s only M&S store in India. The business continues to maintain thrust on innovation and focuses on several meaningful innovations, like providing an anti-bacterial finish in all shirt packs, quick dry swimwear products, sleek and sculpt body shaping innerwear among several other product innovations.

Reliance Digital Express Store
Digital Express Mini is a smaller store format catering to mobility and communication needs of the consumers.
The rate of opening stores during the year has been on an accelerated path for Digital Express Mini format. In a short period, the format has established itself as the country’s largest mobile phone retail chain. The format is increasingly becoming a distribution platform for most of the national and international brands as it offers tremendous reach to over 150 cities in India, with further plans to take the format to over 800 cities.
ResQ, the service arm of digital continues to expand and strengthen its capabilities. It is a full-fledged service organisation and is India’s first multi-product, multibrand and multi-location service network that provides solutions encompassing end-to-end product life cycle requirements for the entire range of CDIT products and other value-added services.

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Reliance Digital offers cutting-edge, aesthetically designed, high value products through the own-label brand ‘ReConnect’. ReConnect products are offered in over
100 products across all core product categories ranging from Tablets, TVs to accessories. ReConnect contributed up to 18% penetration for several CDIT product categories representing steady increase in the own label penetration.
Digital format sector continued its rapid expansion during the year. It added 912 stores to its tally of 284 stores at the beginning of the year and built upon its leadership position and achieved a distinction of crossing the 1,100 stores mark.
Built around the central theme of providing cutting-edge technology solutions, the Digital Express format offers a wide range of products and helps customers connect with their world from anywhere at any time.
Brands

Reliance Brands has a portfolio of 40 brands that span across the entire spectrum of luxury, bridge to luxury, high-premium and high-street lifestyle space. Reliance
Brands continue to partner with new and revered international brands. During the year, Reliance Brands announced partnership with ABG Juicy Couture, LLC for a distribution agreement for the Brand, Juicy Couture in India. Reliance Brands also partnered with BCBG
MAX Azria Group, Inc. to bring in India, an international women’s wear brand known for its contemporary fashion sensibilities. Reliance Brands now operates 107 stores for international brands. The strong partner portfolio reassures that
Reliance Brands is seen as a partner of choice for international brands.

Reliance Jewels was focused on undertaking several process improvement initiatives to augment the customer experience in the stores. These initiatives included introduction of technology solutions catering to jewellery retail, setting up of centralised distribution centre for faster delivery of goods to stores, training of store staff to improve better service to customers and others.
There is also an added focus on building in-house designs so that customers can get most exquisite designs, which are uniquely available at Reliance Jewels store.
With the Government relaxing import restriction recently, better availability of bullion and stabilising of gold prices, the business growth should return in the sector in the near future.

Operations and Financial performance
Financial Performance
FY 2013-14
%
(` in crore) change
2.8
14,556
21.2%
0.1
118 253.4%
0.8%

FY 2014-15 FY 2014-15
(` in crore) ($ in billion)

Revenues
EBIT
EBIT (%)

17,640
417
2.4%

Reliance Retail business grew by 21.2% to reach revenue of ` 17,640 crore as against ` 14,556 crore registered in the previous financial year. EBIT for the year grew by 3.5x to ` 417 crore.
It continued to grow profitably, achieving earnings before depreciation, finance cost and tax expense
(EBDITA) of ` 784 crore, up 116% on y-o-y basis. The format sectors collectively witnessed a five-year CAGR of
31% in revenues.
Reliance Retail witnessed strong same store sales growth up to 17% across format sectors over the last year.
Continued focus on providing better shopping experience, coupled with strong store operations and utilisation of back-end infrastructure efficiencies, has resulted in this year’s strong performance.

Hamleys store in Mumbai
Jewellery

During the year, jewellery demand remained sluggish owing to weak macro environment. Regulatory changes severely curtailed gold imports, resulting in scarcity and spiralling cost of imported gold. The inevitable outcome was higher gold prices and weak consumer demand.

During the year, Reliance Retail consolidated its market leadership in all of the focus sectors of digital, lifestyle and value sectors. During the year, Reliance Retail undertook an unprecedented store opening plan on an accelerated pace and added a net total of 930 stores to further increase its reach in the underserved markets.
A total of 0.9 million square feet area was added during the year.
As on 31st March 2015, Reliance Retail operated 2,621 stores, covering an area of over 12.5 million square feet across 200 cities.

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
The performance of various format sectors during the year is detailed below.
Store Count and Additions
Area in Store Count
As on 31st
Million
Square Feet March, 2015
Value and Others
5.42
616
Fashion & Lifestyle
4.04
649
Digital
2.53
1,196
Brands
0.32
107
Jewellery
0.20
53
12.51
TOTAL STORE
2,621

Format Sector

Store
Additions
FY 2014-15

-102
116
912
5
-1
930

Revenue Mix
(%)
6

consumers to experience and benefit from the interplay of communication and technology. Expansion of Digital
Express Mini format would continue this year to newer geographies, supported by further strengthening of ResQ, the service organisation.

JIO INFOCOMM
Market environment
With more than 961 million mobile users as of February
2015 (Source: TRAI), India has achieved a tele-density of more than 76%. However, the growth in broadband connections has not been commensurate with the enormous growth of India’s telecommunication industry.
India has only around 18.7 million broadband connections as of September, 2014 (Source: TRAI), excluding internet access by wireless phone subscribers, which is comparatively lower than other countries.

2
Value Format &
Others

14

Digital

2014-15

54

Fashion & Lifestyle
Jewellery

24

Brand

LEADERSHIP positions maintained in grocery, digital and apparel formats

LTE, a fourth generation wireless technology that offers higher speed, is likely to alter the contours of the Indian wireless industry and drive the ‘Digital India’ movement.
LTE rollouts will not only accelerate data adoption (user base and usage) in India, but will also cause a dramatic shift for 4G services.
RIL’s subsidiary RJIL has made significant progress in building its LTE business, including physical network infrastructure, systems and processes, sales and distribution network, applications and services, content and many others. It is working with strategic partners who have committed significant resources, know-how and global talent to support the deployment and testing activities currently underway.

Spectrum acquisition and infrastructure tie-ups
Growth plans
Reliance Retail has launched the first of its online channel initiatives through www.reliancefreshdirect.com. The site is currently under pilot and process improvements are being implemented. It will further improve the end customer experience. The operations would be expanded to newer geographies in a phased manner.
Reliance Retail is poised to launch multi-channel shopping for other format sectors as well. The potential of e-commerce combined with the network of physical store locations will offer tremendous choice and convenience at a great value to the consumer. The opportunity is to integrate an ‘offline-online’ model, which can truly differentiate the customer experience.
Reliance Market remains a priority for network expansion as it continues to empower kiranas and helps farmers and small manufacturers to benefit from the modern distribution system.
Digital sector remains one of the growth verticals for the coming year. The Digital Express Mini format enables

RJIL is the only private player with Broadband Wireless
Access (BWA) spectrum in all the 22 telecom circles of
India. It plans to provide reliable fast internet connectivity through the 20 MHz, contiguous, pan-India BWA spectrum.
RJIL has also successfully acquired 1800 MHz spectrum across 14 key circles in February, 2014.
In March 2015, RJIL successfully acquired the right to use spectrum in 800 MHz band or 1800 MHz band or both in 13 key circles across India in the spectrum auction conducted by DoT, GoI. With this acquisition, in addition to the pan-India 2300 MHz spectrum, RJIL has spectrum in either 800 MHz or 1800 MHz or both, in 20 out of the total 22 circles in the country. RJIL’s total equivalent spectrum footprint has increased from 597.6 MHz to 751.1
MHz (including uplink and downlink), strengthening its position as the largest holder of liberalised spectrum.
Frequency
No. of circles
Spectrum in
MHz (Uplink &
Downlink)

800 MHz
10

1800 MHz
18

2300 MHz
22

97.5

213.6

440.0

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This combined spectrum footprint across frequency bands provides significant network capacity and deep in-building coverage. RJIL plans to provide seamless 4G services using LTE in 800 MHz, 1800 MHz and 2300 MHz through an integrated ecosystem.

addition to LTE and its future versions, it will continue to evaluate and deploy other technologies, both wireless and wire-line, to offer comprehensive broadband solutions to consumers, small businesses, enterprises, government and other entities.

RJIL is working aggressively in achieving the minimum rollout obligations as specified in the notice inviting application for the spectrum auction in 2010, as per the
Test Schedule Test Procedure (TSTP) issued by DoT in
March, 2015. RJIL was allotted Mobile Switching Centre
Code (MSC), Mobile Country Code (MCC) and Mobile
Network Code (MNC) for mobile access services across all 22 circles by the DoT, hence providing it with about
22 million mobile phone numbers across India to provide mobile access services. Apart from the above, RJIL has been allotted crucial Signalling Point (SP) codes by DoT for launching National Long Distance (NLD) and International
Long Distance (ILD) services. RJIL has also received clearances to set up international internet gateways by
Centre for Development of Telematics (C-DoT) and DoT.

Voice over LTE (VoLTE)

RJIL has adopted a partnership based model for telecom infrastructure for 4G wireless and fibre based high speed broadband services. In line with this strategic intent,
RJIL and its wholly owned subsidiaries have finalised the following partnerships, among others, for infrastructure sharing: An agreement with Indus Towers, for more than
1,13,490 towers across 15 telecom circles in India
An agreement with GTL Infra, for more than 27,800 towers across India
An agreement with Ascend Telecom, for more than
4,500 towers across India
An agreement with Tower Vision, for 8,400 towers across India
An agreement with ATC India, for 11,000 towers across India
Agreements with Reliance Communications Limited
(RCOM) for sharing of RCOM’s extensive intercity and intra-city optic fibre infrastructure of nearly 1,20,000 fibre-pair kilometres of optic fibre and 5,00,000 fibrepair kilometres respectively, and 45,000 towers

Technology framework
LTE

LTE has globally emerged as the technology of choice to deploy next generation mobile networks. Global operators are deploying mobile networks using LTE to meet the explosive demand for mobile data services. It offers superior performance at lower cost per megabyte of data, compared to 3G, and also has more evolved ecosystem and compatibility with 2G and 3G.
RJIL is deploying an enhanced packet core network to create a futuristic, high capacity infrastructure, to handle huge demand for data, video and voice services. In

RJIL plans to provide advanced 4G voice calling using
VoLTE, a technology to offer high quality voice calls over its 4G network. The quality of voice services on VoLTE is superior compared to 2G/3G voice services. VoLTE also allows video-calling, and RJIL has showcased LTE- Time
Division Duplex (LTE-TDD) inter-operability use case with
China Mobile at Mobile World Congress 2014 (MWC) in
Barcelona. In addition to high speed data, the 4G network will provide voice services from and to non-RJIL networks.
High speed broadband over Fibre to the x (FTTx)

In addition to 4G wireless services, RJIL is planning to roll out high speed internet services via FTTx. The high speed fibre connectivity will enable RJIL to provide a wide gamut of digital services across various sectors.
RJIL has all the key agreements in place with its technology partners, service providers, infrastructure providers, application partners, device manufacturers and other strategic partners for the project. It is in the process of implementation of the detailed plans for the infrastructure needed in few selected markets and has also started field operations on a pilot basis.
Devices

LTE ecosystem is gaining traction worldwide as more devices across various price points are being launched to strengthen the device ecosystem across the globe including India. Recent device launches from various
Original Equipment Manufacturers (OEMs), with various device capabilities, is only a beginning. The global handset ecosystem is rapidly evolving, and multiband, multimode handsets shall soon become the default offering.
RJIL has been actively involved in developing the ecosystem for India’s LTE phones, working with renowned
OEMs, Original Design Manufacturers (ODMs) and chipset vendors on end-to-end device design and engineering.
RJIL is ensuring the tight integration of these devices with
Jio’s network infrastructure, platforms and applications portfolio to ensure seamless experience to customers.

Developments during the year
RJIL has demonstrated Lawful Intercept and Monitoring
(LIM) system in few circles with DoT and has been granted approval. RJIL has also demonstrated its capabilities of
Aadhaar based e-KYC, for paperless activations as per the directives of DoT.
RJIL is currently conducting extensive field tests in Navi
Mumbai, Jamnagar and other locations on integration

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) of devices with its network, platform and services, to provide uninterrupted service to customers. RJIL has finalised or is in the process of finalising agreements with
OEMs and ODMs for LTE devices, and is working with its partners on certification, validation and quality assurance.
RJIL is committed on innovation, design and providing technologically advanced devices at affordable prices.
RJIL has exhibited trial 4G services at various techfest, college events, trade shows etc., and has offered highspeed Wi-Fi broadband services to various participants.
Participants were able to experience benefit of high speed wireless connectivity for hand-held devices
(smartphones and tablets) over a blend of LTE and Wi-Fi networks. Participants were also provided a glimpse of various products RJIL is working on, including gaming, e-payment through mobile phone, video conferencing,
TV programmes, video on demand and many more.
RJIL has launched trial Wi-Fi hot spots across India and is in the process of entering agreements with various State and
Local Authorities to provide Wi-Fi services.
RJIL continues to attract the best talent in the industry and is focusing on building a high performance team. The key leadership talent, required for setting up of the business at Headquarters and respective geographies, are in place, and are currently getting ready for the launch phase.
RJIL is actively involved in setting up of robust sales and distribution network through a chain of distributors and retailers across the country. RJIL is already working on creating a world-class customer support experience.
RJIL is rolling out physical office infrastructure across 880 cities/towns across India. RJIL continues to hire talent for various positions across all locations, who are actively working towards the launch of services.

MEDIA AND ENTERTAINMENT
During the year, Independent Media Trust (IMT), of which RIL is the sole beneficiary, acquired the control of
Network18 Media & Investments Limited (Network18), including its subsidiary TV18 Broadcast Limited (TV18).
This acquisition will differentiate Reliance’s Jio Infocomm business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties.
India’s media and entertainment industry is on the cusp of entering a new era of growth, riding the digitization of television distribution, steady growth of regional media and fast emerging new media businesses. Network18, with its multi-platform portfolio is geared to unlock these opportunities by leveraging technological innovation and harnessing emerging trends.
Network18 has interests in television, digital content, filmed entertainment, digital commerce, magazines,

mobile content and allied businesses. Network18, through its group companies, operates a combined bouquet of over 30 channels. These channels include general news channels in English, Hindi and regional languages, business news channels in Hindi, English and
Gujarati, national and regional entertainment channels, music channels, kids channels and infotainment channels.
Network18 operates a number of digital and mobile properties offering digital content and commerce, including home shopping and online ticketing. It also publishes special interest magazines and has a presence in film production and distribution.
Network18’s operating model is driven by its zeal to provide consumers with the best-in-class media and entertainment products, that set new benchmarks in creative excellence, fair journalism and audience engagement. It adds value and differentiates itself through 5 key elements - consumer engagement across platforms, creative excellence/innovation, thought leadership, network synergy and strategic collaborations.
At Network18, there is a focus on driving the highest standards of creative excellence by fostering a culture of innovation to build new content formats across platforms.
Further, at Network 18, it is believed that leadership is derived not only through consumption numbers, but also by providing a platform to new ideas. Network18 constantly strives to host thought leadership – on air, online and on ground. Network18’s synergy across its varied and vast portfolio facilitates cross-pollination of content. Network18 has strategic alliances with leading international players including Viacom, CNN, CNBC,
Forbes and A+E Networks.
During the year, Network18 reached out to over
228 million television viewers (Source: TAM | All India | CS
4+ | 1st April, 2014 to 28th March, 2015| All days, 24 hours| Avg.
Monthly Reach) and an average of 24.5 million (Source:
Independent Industry data sources) unique digital visitors per month.
From the date of acquisition of control till 31st March, 2015,
Network18’s operating revenue stood at ` 2,747 crore and
EBIT at ` 135 crore, on a consolidated basis.

MODEL ECONOMIC TOWNSHIP LIMITED
(Erstwhile Reliance Haryana SEZ Ltd)
In line with the objective of developing a world-class township at Jhajjar, Haryana namely Model Economic
Township (MET) and creating a distinct identity, the name of the Company Reliance Haryana SEZ Ltd (RHSL), has been changed to Model Economic Township Limited
(METL).
The Company has returned 1,383.68 acres of land to
Haryana State Industrial and Investment Development
Corporation Limited (HSIIDC). HSIIDC and Infrastructure

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Leasing and Financial Services Limited (IL&FS) have since exited the venture. It has now become a wholly owned subsidiary of RIL.
METL commenced development of the phase I of the
Model Economic Township and units of Panasonic and
Denso are already operational. The Company has sought license for additional land parcel of approx 400 acres which is expected by June, 2015. Besides, it plans to start development thereafter and apply for license for an additional area of 600 acres of land. To mitigate the challenge of land consolidation, it has been making selfefforts to achieve consolidation of its existing land parcels primarily through land exchange scheme.
METL has engaged itself in various CSR activities in the field of healthcare by providing mobile health services to 18 villages, free eye care and dental camps, women empowerment and employability training, technical education and skills development and creation of village infrastructure in its project area.

LIQUIDITY AND CAPITAL RESOURCE
Financing strategy
Reliance endeavours to diversify its funding sources across instrument classes, financing products, financial markets and investor classes. Its superior credit profile and strong relationship with lenders, which include over 100 banks and financial institutions, allows it to flexibly tie up optimal financing mix at competitive costs.
Reliance also strives to manage its debt portfolio, by actively exploring opportunities to reduce cost of existing long-term debt, as well as to extend the average maturity of its portfolio to optimal level.
Reliance calibrates its financing strategy continuously, in order to maximise long-term value growth for its stakeholders, while maintaining a secure financial base.
Facilities from Export Credit Agencies (ECAs)

During FY 2014-15, RIL signed ~ $ 1.3 billion equivalent facilities backed by 6 ECAs.
Name of ECA

Amount

1. Japan International Bank for Cooperation
(JBIC)
$ 550 million
2. Nippon Export and Investment Insurance
(NEXI)
3. Export Development Canada (EDC)
$ 500 million
4. Swiss Export Risk Insurance (SERV),
5. Oesterreichische Kontrollbank AG (OeKB)
€ 175 million
6. Office national du Ducroire/Nationale
Delcrederedienst (ONDD)

These facilities will be drawn over the next one to two years, as the projects progress and will have a door-to-

door tenor between 11 and 13 years. These deals were accorded ‘Better than Sovereign’ rating by all these ECAs.
This was the first time, these agencies accorded such a rating to any corporate in their history, re-emphasising
RIL’s creditworthiness in international debt markets.
RIL also re-priced $ 900 million of existing ECA facilities to reduce its cost of debt. It includes $ 500 million equivalent facility supported by KSURE (South Korea) and $ 400 million facility supported by SACE (Italy). This was the first time that facilities covered by either of these
ECAs have been re-priced.
For the $ 550 million facility backed by JBIC & NEXI and
€ 175 million facility supported by SERV, OeKB and
DUCROIRE, RIL has received the ‘Deals of the Year 2014’ award from Trade Finance Magazine, a Euromoney publication. US bond issuance - Rule 144A/Regulation S Offerings

During FY 2014-15, RIL priced rule 144A/Regulation
S offering of $ 1 billion 4.125% Senior Unsecured Notes due 2025. This was the first 10 year issuance in the oil and gas sector out of Asia (ex-Japan) since July, 2014 and the largest private sector oil and gas deal out of Asia
(ex-Japan) since the last RIL guaranteed bond in 2012.
This was RIL’s lowest cost US$ bond issuance and also the lowest coupon ever achieved by an Asia (ex-Japan) corporate issuer in the BBB category, for a 10 year issuance with a size of $1 billion or more. These Notes were oversubscribed 4.5 times across 272 accounts.
During FY 2014-15, RIL also priced rule 144A/Regulation S offering of $ 750 million 4.875% Senior Unsecured Notes due 2045. With this issuance, RIL continues to be the only Regulation S / 144A private corporate issuer for a 30 year issuance out of Asia, since 2003. This deal achieved the lowest coupon ever achieved by an Asian private corporate issuer for a 30 year issuance, and also was the first ever single tranche 30 year deal by a private corporate issuer out of Asia. These Notes were over-subscribed 3.07 times across 167 accounts.
Financing in Subsidiaries

During FY 2014-15, RJIL raised foreign currency financing from banks and other institutions aggregating over
$ 2.25 billion, to part finance the capital expenditure. This

Awarded

’Deals of the Year 2014’ from Trade Finance Magazine, a Euromoney publication

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) included $ 750 million ECA financing supported by The
Export-Import Bank of Korea (K-EXIM). This facility will be drawn over the next one to two years as the projects progress and will have a door-to-door tenor of 12 years.
This transaction was the first and largest long-term telecom equipment and services, financing globally till date by a Korean ECA and also the largest deal in India till date by K-EXIM.
The K-EXIM deal has been awarded ‘Best Asia-Pacific ECA
Finance Deals of the Year’ by Trade and Export Finance
(TXF) as part of their perfect 10 awards, which recognise only 10 deals globally within Export & Project finance for 2014. This deal has also been awarded as ‘Deals of the Year 2014’ by Trade Finance Magazine, a Euromoney publication. RJIL also signed syndicated term loan facilities aggregating to $ 1.5 billion to refinance the syndicated term loan facilities aggregating to $ 1.5 billion tied up in 2010, significantly extending maturity at a lower cost.
These facilities comprised $ 1 billion facility with a total maturity of 5.5 years and the $ 500 million facility which had a total maturity of 7 years. The $ 500 million facility had the longest average maturity for an unsecured syndicated loan of similar size in Asia this year. These facilities had participation from a total of 26 banks and raised over $ 400 million in syndication.
In addition to the foreign currency financing, RJIL issued long-term INR debentures aggregating to ` 5,000 crore comprising ` 1,500 crore debentures with maturity of five year and ` 3,500 crore debenture with maturity of 10 years. RJIL also tied up INR secured loans of ` 2,400 crore with total maturity of 7.5 years.

S&P rated RIL two notches above India’s sovereign rating with Stable Outlook
Capital Resources
During FY 2014-15, RIL and its subsidiaries tied up longterm facilities of ~ $ 6.50 billion equivalent across various financing products and maturities. The below table shows debt levels and related ratios for the year ended 31st March,
2015 and 31st March, 2014 for Reliance on a consolidated basis. 31st March, 2015

Particulars
Cash and marketable securities (` in crore)
Gross debt (` in crore)
Net debt (` in crore)
Gross debt to equity ratio
Net debt to equity ratio
Net gearing (%)

31st March, 2014

84,472

90,637

1,60,860
76,388
0.74
0.35
24.6 %

1,38,761
48,124
0.70
0.24
18.4 %

Reliance’s consolidated net debt level has increased during the year, as it drew down on funding to finance the ongoing expansion of its petrochemical capacities, new gasification plant and refinery off-gas cracker.

Credit Rating
RIL’s financial discipline and prudence is reflected in the strong credit ratings ascribed by rating agencies. The below table depicts RIL credit ratings profile in a nutshell:
Instrument

Rating Agency

Rating

Outlook

Remarks

International debt
International debt
Long term debt
Long term debt

S&P
Moody's
CRISIL
Fitch

BBB+
Baa2
AAA
Ind AAA

Stable
Stable
Stable
Stable

Two notches above India’s sovereign rating
One notch above India’s sovereign rating
Highest rating awarded by CRISIL
Highest rating awarded by Fitch

Ratings Definitions
S&P BBB+: An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.
Moody’s Baa2: Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.
CRISIL AAA: Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations.
Such instruments carry lowest credit risk.
Fitch Ind AAA: ‘AAA’ national ratings denote the highest rating assigned in its national rating scale. This rating is assigned to the ‘best‘ credit risk relative to all other issuers or issues in the country.

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Liquidity and Treasury Management
Reliance manages its working capital efficiently by optimising the cash-to-cash cycle through active financing of receivables and extending maturities of payables.
Reliance effectively manages its cash and cash equivalents and cash generated from operations through diversified investment portfolio. Reliance’s investment portfolio consists of wide ranging financial instruments viz., liquid and highly rated securities, bank fixed deposits, CDs, government securities, corporate bonds and mutual funds.
The diversification across instruments and counterparties enables Reliance to avoid concentration risk.
With its robust Risk Management Framework, Reliance has the ability to monitor and adjust its investment portfolios in the light of a dynamic market environment and mitigate consequent risks.
During the FY 2014-15, RIL won the award for ‘Best
Hedging Strategy 2014’ from Corporate Treasurer, a leading treasury publication in Asia Pacific.
RIL also bagged ‘Asia Champion Award’ and ‘Treasury
Team of the Year’ from ‘The Asset AAA’ recognising its excellence in the industry across Asia.

SUSTAINABLE GROWTH AT RELIANCE
The way Reliance conducts its business has evolved over the decades both at the individual and group level.
Reliance has reached up to this scale on the strength of 4 enablers, which would also enable it to sustain its growth momentum, reinforcing Reliance’s fundamental philosophy - ‘Growth is Life’. These enablers are:
A)

A Strategic Framework which ensures that the business model meets the objectives of all stakeholders B) Focus on 4P’s (Planet, People, Products & Processes and Profit) which ensures an all-inclusive growth
C) An Enterprise Risk Management Framework which ensures mitigation of risk while seamlessly governing the execution of operations
D) Smart Transformation at Reliance (STAR) which ensures the institutionalisation of Reliance’s DNA through continuous reinvention, for the next level of growth provides guidance for each of the businesses - both established and emerging.
The Group Strategic Framework ensures that the business model, business strategy, and operating models comprehensively address each component of the Reliance’s Group Strategy and remain bound by it. It improves alignment between each of the businesses and the group.
Refer page no. 18 of the Corporate Overview for the quick view into the strategic framework of Reliance.

B) DIMENSIONS OF SUSTAINABLE GROWTH4 P’s (PLANET, PEOPLE, PRODUCT &
PROCESSES AND PROFIT)
1. Planet
RIL continues to meet the growing energy demand, while working towards minimising the environmental footprint of its ongoing operations, as well as all future projects. This is done, among others, by setting environmental targets and investing in green projects. Continuous Improvement - Minimising
Environmental Footprint

RIL in its journey towards excellence in environmental management has started further strengthening its compliance processes and systems to reach compliance plus level. This is being done by institutionalising a rigorous analysis and audit processes. A dedicated ‘Environmental Compliance
Review Committee’ has been created at each manufacturing site.
Environmental Management System in conformance to ISO-14001, is followed at all its manufacturing sites. All major sites have adopted ‘Integrated
Management System’ combining Environment (ISO14001), Quality (ISO-9001) and Occupational Health &
Safety Management System (OHSAS-18001).

A) STRATEGIC FRAMEWORK AT RELIANCE
Reliance’s group strategic framework sets out its strategy, financial framework and how the Reliance manages risk.
Group Strategic Framework establishes the goals of Reliance. It also describes the strategic intent of Reliance and the expectations and boundaries within which each of its businesses must operate. It

Green belt at Jamnagar

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
As a part of continuous improvement, various initiatives were undertaken during the year like;
Recovering product gasoline heat, by heating effluent exchanger inlet stream devised by
Pinch Technology, using super target software resulting in fuel savings of 4.81 Gigacalorie per hour (Gcal/hr)
An initiative to reduce compressor’s power consumption in Parex trains, by operating at lower H2/HC ratio resulting in saving of 0.44 Gcal energy Numerous of such initiatives at the manufacturing locations led to an aggregated energy saving of
4.33 million Gigajoule (GJ) thereby reducing
Greenhouse Gas (GHG) emission.
RIL has been publishing annual sustainability reports since FY 2004-05 as per the Global Reporting
Initiative (GRI) guidelines. The reports were externally assured with an A+ rating indicating highest level of comprehensive disclosures.
The sustainability reports are available at http://www.ril.com/Sustainability/CorporateSustainability.aspx. Most of the sustainability indicators have shown improvement over the years. During the year, further steps have been initiated to strengthen the sustainability governance framework. The focus during the year was on energy conservation, renewable energy, GHG emission reduction, reduction of air pollutant emissions like Sulphur Oxides
(SOx), Nitrogen Oxides (NOx) and waste recycling.
Significant efforts in this direction have resulted in improved performance in the key areas identified as indicated below. The parameters indicate percentage changes in absolute total values at the manufacturing locations, compared to the previous year.
Continuous Improvement

Reduction of direct GHG emission by 3.14 %
Reduction of SOx emission by 11.71 %
Reduction of NOx emission by 4.46 %
Increase in renewable energy consumption by
2.47 %
Increase in material recycled by 4.11 %

Direct GHG emissions at manufacturing locations (millions tco2e)

25.49

FY 2013-14

24.69

FY 2014-15

3.14%
Reduction in Direct GHG Emissions

SOX and NOX emissions at manufacturing locations
(000’ tonnes)

28.47

27.2

11.61

FY 2013-14
SOX

10.25

FY 2014-15
NOX

11.71% & 4.46%
Reduction in SOx and NOx emissions

Across RIL, as a part of awareness, it celebrates ‘World
Environment Day’, ‘Earth Day’, ‘International Day for the
Preservation of the Ozone Layer’ and ‘World Wetland Day’.
Inculcate ‘care for environment among stakeholders’

RIL undertakes due diligence, auditing for Health Safety and Environment (HSE), and plant procedures at suppliers’ manufacturing plants. Audit certifications of suppliers’ facilities for safe and healthy working conditions, environmental procedures and systems, are carried out drawing attention to unsafe work practices.

Biogas plant installed at RCP

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Promoting use of eco-friendly fuels

Renewable energy consumption at manufacturing locations
(000’ GJ)

464.33

FY 2013-14

475.81

FY 2014-15

2.47%
Increase in renewable energy consumption
Few suppliers were, thus visited multiple times, to ensure that corrective actions on clean, safe and healthy working environment are taken. This was made mandatory for continuing business with RIL.
RIL’s sourcing practices integrate requirements, specifications and criteria that are compatible and in favour of protecting the environment, social progress and supporting India’s economic development. RIL’s sustainable sourcing procedures focus on: world class supplier base, contractor care, responsible care, development of India’s engineering talent, innovation through supplier collaboration, green packaging and managing human rights across the supply chain.

RIL continues to work towards the development and implementation of climate change mitigation projects.
This is primarily done through energy efficiency initiatives at all manufacturing sites (as listed in the Director’s report page no 175), where use of cleaner fuels and renewable energy has been adopted. During the year, RIL has taken up various initiatives for the deployment of renewable energy, like rooftop solar photovoltaic projects, biogas generation project, and carrying out wind resource assessment for exploring possibility of installation of wind turbines. Clean Development Mechanism (CDM)

RIL has built in-house capacity to develop CDM projects, and obtain the registration and issuance of the same in the form of Certified Emission Reductions (CERs) from the United Nations Framework Convention on Climate
Change (UNFCCC).
As on 31st March, 2015 following CDM projects at RIL are registered at UNFCCC.
Site Name
Jamnagar
Hazira
Vadodara
Barabanki
Khinwsar
Dahej
Patalganga
Allahabad

CDM projects
Reduction in steam consumption in stripper re-boiler through process optimisation
Energy efficiency through steam optimisation Energy efficiency through heat recovery
Biomass based process steam generation
Solar power generation
Demand side energy conservation and reduction Demand side energy efficiency projects
Improvement in energy efficiency of steam generation and power consumption

Spill Prevention

Total recycled materials at manufacturing locations (000’ tonnes)

69.15

FY 2013-14

RIL has strong processes and procedures to prevent operational spills. There were no significant spills or leaks at RIL facilities during the FY 2014-15.

71.99

FY 2014-15

4.11%
Increase in recycled material utilisation

Solar Photovoltaic system installed at RCP

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
2. People
Human Resource (HR) transformation

RIL HR has earmarked a dedicated team reporting to
Group Chief Human Resource Officer (CHRO), under the newly formed role of ‘Governance, Integration,
Risk & Assurance’ to drive the ‘Reliance Management
System (RMS)’ journey for RIL HR. As a result, RIL HR function has strengthened its impact in its day-today functioning, and is raising its bar of excellence to ensure timely availability of necessary talent and capabilities and engage and help talent to perform sustainably. During FY 2014-15, RIL has implemented three of the four ‘waves’ of the R-HR Transformation process, which included:
Rolled out ‘Our Values & Behaviours’, to guide it through its mission and vision in the coming years
Unification of RIL’s position grading across the
Company
Performance management that balances long term and short term goals, as well as delivery and behaviours Annual cash bonus alignment to market rates and linked to performance outcomes
Consistent delegation of authority to empower managers to make decision on people related matters Best-in-class talent management and succession planning practices for building RIL’s leadership pipeline Career Acceleration Programme (CAP) for young and high potential employees
Alignment of internal and external job markets, underpinned by a standard recruitment process
Five-day working week

RIL has also implemented a programme called
‘Task Based Health Risk Assessment’ (TBHRA). The programme focusses on approach to evaluate occupational hazard effects on individual with respect to task and job position, and also provide ‘exposure data’ linked to each employee or group of employees.
A significant initiative, ‘REFERS’ (Reliance Employee and Family Emergency Response Services) offers
24x7 assistance in case of any medical, accident, fire and security exigencies.
In addition to emergency medical services, the
Occupational Health Centres (OHC) offer preventive, promotive, curative and rehabilitative health services to its employees. All centres are equipped with stateof-the-art diagnostic and therapeutic equipment.
Across RIL, as a part of awareness, it celebrates No
Tobacco Day, World Diabetes Day, Women’s health awareness drive and World Heart Day.
During the FY 2014-15, RIL’s expenditure on HSE was
` 289.75 crore.
RIL has been accredited by agencies like Joint
Commission International, National Accreditation
Board for Hospitals, National Accreditation Board for
Laboratories, etc. for its initiatives and activities in the field of health and well-being.
Safety

RIL is driven by the philosophy of ‘One Reliance.
Healthy Reliance!’

RIL targets zero injuries and incidents. Safety is a critical aspect in delivering responsible products, and hence, RIL conducts its operations considering safety of its employees, suppliers and vendors, as well as communities in which RIL operates. A fully equipped and well-qualified HSE organisation is in place at all locations providing necessary governance, documentation and HSE assurance. To support its HSE organisation, RIL is backed by a Centre of
Excellence at the Corporate, which brings in subject matter expertise in various fields of HSE, apart from governance. To ensure the effective functioning of the Health, Safety and Environment Management
Systems (HSE-MS), and for conducting regular performance reviews, RIL has also formed a boardlevel HSE Committee.

RIL employees undergo regular periodic medical examinations which are also extended to contract employees at manufacturing sites. The results are maintained online, and analysed to provide targeted interventions at individual and group levels. A high alert recall is then sent as per the pre-defined criteria, and a follow up is done until the parameter returns to normal. RIL’s HSE Learning and Development (L&D) programmes and e-modules are designed to equip employees with skills needed for safe operations.
These modules cover workplace risk and process risk management. This e-learning is corroborated by field training. Collaborating and networking with global institutions and industries has helped in improving the competencies at every level of line management.

Wave 4 of R-HR Transformation, comprising
Leadership Development and Learning, is expected to be rolled out by July, 2015.
Health and Wellbeing

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Injury rate at manufacturing locations
(per 100 workforce)

talent. The principle focuses on providing its people three categories of experience, 70% through the challenging work on hand, 20% through interaction with people and 10% from training activities.

0.083

0.048

FY 2013-14

FY 2014-15

While the five functional and four business academies give emphasis to enhancing the functional and domain competencies of employees - through e-learning, classroom training and on-the-job assignments. The Reliance Institute of Leadership focused on building core RIL values and behaviours among employees, through a series of customised workshops to firmly establish the principle that, ‘How’ we do things at RIL, matters as much as ‘What’ we do.
RIL imparted more than a million man-hours of trainings (1.76 million man-hours) to its people, both through internal and external subject matter experts in FY 2014-15.

42.17%
Reduction in Injury rate
The management of Process Safety Risk is part of
Process Safety Management in HSE Management framework. At RIL, an integrated robust system is in place to monitor process safety incidents and other
HSE incidents.
RIL has implemented ‘Learning From Incidents’ across its sites to interpret incidents and make improvements in the existing practices. A team of qualified specialists provide recommendations. The action plan is monitored through a comprehensive and robust tracking system to ensure complete adoptability of the plan.

Training
(million man-hours)

1.76
1.36

FY 2013-14

Lost day rate at manufacturing locations
(per 100 workforce)

5.26

29.41%
Increase in man-hours of training imparted

3.24

FY 2013-14

FY 2014-15

FY 2014-15

38.40%
Reduction in lost day rate
Nurturing and managing talent

RIL’s business strategy is aimed at building social capacity, which leads to sustained growth. RIL has adopted the 70:20:10 principle for nurturing

RIL partnered with leading institutions and professional bodies worldwide, including the
Indian Institutes of Management, Indian Institutes of Technology, Harvard Business School, Bersin by
Deloitte and Corporate Executive Board, among others, to provide ‘anywhere-anytime’, world-class e-learning and classroom programmes.
To build tomorrow’s leaders, RIL has rolled out the Career Acceleration Programme (CAP). This programme identifies, supports and accelerates the development of employees, who demonstrate high potential and the level of excellence required to move into senior positions within the organisation.
RIL has created a strong bench strength for leadership roles in the organisation and focusing on long-term development initiatives, such as mentoring and coaching by leadership teams, job rotations and stretch assignments.

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At RIL, trainings are extended to contractual workforce with a focus towards developing their capacities, especially on HSE.
To inculcate the culture of quality and enhance the knowledge of business process excellence, people are being trained on Six-Sigma protocol. This year, a total of 14,546 person hours of training have been provided on Six-Sigma. During the year, 82 Six Sigma projects have been executed.
Diversity & Inclusion

RIL believes in creating an environment for its employees which is free from any discrimination.
The Company culture embraces diversity and aims at treating everyone with dignity and respect. RIL believes in equality irrespective of gender, sexual orientation, disability, caste or age.
As on 31st March 2015, RIL’s total people strength is 24,930 including 1,195 female employees. RIL employs people from 19 nationalities.
RIL is strongly committed to gender diversity and has taken progressive measures to increase representation of women in the organisation, especially at the leadership level. Diversity initiatives taken at the corporate level includes:
Extension of maternity leave
Introduction of Adoption leave
Launched a first ever radio show at RIL to hold discussion on gender diversity
Organising Self-defense workshops for women
Introduction of Internal Complaints Committee
Pan-India toll free Helpline for safety & security
R-Aadya Initiative: RIL introduced a common platform for women workforce to connect, converse and collaborate. R-Aadya is about the power of women at
RIL. RIL believes that women have the same potential to contribute towards realising the organisation’s vision. Under the R-Aadya platform RIL has introduced
“Nirbhaya: Be Fearless©” which is an Android emergency application that can send a distress call or emergency message to a specified contact or group in an emergency situation.

Diversity & inclusion at RIL

Ethics and Human Rights

All RIL employees, suppliers and vendors are required to respect human rights of not only each other, but also of the community in which RIL operates in. All the Company’s units maintain 100% compliance with local and national laws, regarding ethics and human rights. RIL also takes into account global standards and the Company strives to comply with all global norms on human rights, including the principles outlined in the United Nation’s Universal Declaration of Human Rights. All employees are exposed to these topics through organised training programmes. 100% of its non-supervisory permanent employees at its manufacturing locations are covered under collective bargaining agreements with trade unions.
Stakeholder Engagement

RIL’s relationships with all its stakeholders have a direct and indirect impact on their business activities and reputation. RIL has identified eight key stakeholders (Investors and Shareholders, employees, customers, suppliers, trade unions, Government and regulatory authorities, local community and NGOs) with whom to discuss common solutions through strategic dialogues.
The Company proactively engages with its stakeholders in order to inform them of their business strategy and operations, shape their products and services, manage and respond to social expectations and improve the environment in which RIL conducts its business.

3. Product & Processes
Innovation

The Reliance Innovation Council (RIC) was established in 2008. The RIC spearheads innovation within the organisation by providing RIL a grand innovation vision.
Refer page no. 12 of the Corporate Overview section to know more about the members of the council.
The Reliance Innovation Leadership Centre has led various programmes to integrate innovation within
RIL. Some of the key programmes are:

Reliance Innovation Council members with
Executive Director Shri Hital R. Meswani

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Internal
Mission Kurukshetra (MK): RIL recognises that every mind is creative. MK is a step towards democratising creativity and innovation within the organisation. Through the MK platform, its people can submit ideas and track their progress right up to implementation. In addition, businesses can put up specific challenges seeking novel ideas and solutions. In short, MK aims to be a platform where ideas are born, brought to logical conclusion and executed for impact. In the long term, MK aims to create an environment that allows for every single good idea to be explored for the benefit of the organisation and its people.
Beyonders: The Beyonders programme aims at creating innovation leaders at RIL by linking opportunity with innovation training. The participants receive training in multiple world-class innovation approaches to break psychological inertia and enhance quantity and quality of their ideas. In addition, the programme gives the participants opportunities to lead substantial innovation projects. The Beyonders programme aims to create innovation leaders within RIL who can take on substantial innovation initiatives and introduce the ‘next big thing’ to the world.
D4 (Define-Discover-Develop-Demonstrate): At RIL, the D4 programme aims to create a drive for innovation within its people, ultimately creating a vibrant culture of innovation. This programme is action–oriented-participants identify innovation opportunities and are trained to use cutting-edge innovation tools and techniques to find innovative solutions. The ultimate objective is to achieve bottom-up innovation and help accelerate the accomplishment of organisational goals. The D4 programme aims to enable and empower middle management to ideate and innovate; hence challenging the assumption that innovation comes only from top leadership.
Leading Expert Access Programme (LEAP): Innovation thrives within inspired minds. LEAP was born with the aim of providing people at RIL with access to global thought and innovation leaders through interactive sessions. From industry captains to Nobel Laureates to Social Crusaders, all have been inspiring the people of RIL through LEAP.

External
Global Innovation Hub: In a move to spur innovation in industry, GenNext Ventures, a RIL sponsored Venture
Capital fund and Microsoft Ventures have floated the Global Innovation Hub. This globally competitive platform will support entrepreneurs shape their disruptive ideas in a resourceful setting, with help and guidance from leaders across industries and functionalities.
The collaboration will allow entrepreneurs to access the Microsoft business units for product feedback, marketing and technical guidance, including access to Microsoft’s Biz Spark programme. The four-month long programme grooms, mentors and nurtures high potential start-ups, by providing deep engagement to strengthen and grow customer traction. Beyond the initial four-month programme, GenNext Ventures will fund selected start-ups graduating from the hub and provide them hands-on support to build and grow their companies into successful global companies.

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
Investing in Research & Development (R&D)

Reliance Technology Group’s (‘RTG’) vision is to develop novel and proprietary catalysis, processes and products to improve profitability and sustain the growth of RIL. To achieve this vision, RTG has transitioned from a smart buyer of technology to a fast customiser of technology, and its current initiatives are rapidly establishing RIL as a flagship developer in few key technology areas.

RTG transitioned from a smart buyer to a

fast customiser & flagship developer of technology
RTG focuses on

(i)

New products, processes and catalyst development to support existing business
(near-term R&D), and create breakthrough technologies for new businesses (breakthrough
R&D)

(ii) Advanced troubleshooting and
(iii) Supporting capital projects, along with profit and reliability improvements in manufacturing plants As a part of open innovation, RTG is actively collaborating with various international and national institutions for R&D related activities. Some of the prominent institutions are; Florida State University,
NUS (Singapore), KIER( South Korea), IIP Dehradun,
IIT Mumbai, IIT Kharagpur, IIT Chennai, University of Delaware, Penn State University, Kansas State
University & Massachusetts Institute of Technology
(MIT).
R&D - Refining

RTG continues to pursue research in the areas of coking, hydro processing, Fluidised Catalytic
Cracking (FCC), crude processing, molecule-based process optimisation and value addition from low value refinery streams. In addition to conventional refining area, RTG is also venturing into new areas like biomass gasification, carbon dioxide capture and its utilisation, and Nano technology based applications.
RIL is the sole industry partner in the New Millennium
Indian Technology Leadership Initiative (NMITLI) project with Council of Scientific & Industrial
Research (CSIR) on indigenous ‘Polymer Electrolyte
Membrane’ (PEM) fuel cell technology development.
After successful lab-scale demonstration of PEM fuel cell technology at a lower power, a bigger scaled-up

cell of 3 kilowatt-electric (kWe) capacity has been designed. A fuel cell test bed is being built, for which the engineering has been done by RIL, while the stack is built by its CSIR partner. This test bed should facilitate automated testing of complete fuel cell system and help in system validation.
RTG also provides advanced technical support through computational fluid dynamics and multiple advanced simulation tools. The modelling and simulation group is engaged in resolving several important refinery and petrochemicals reliability issues, leveraging computational fluid dynamics and other simulation tools.
R&D - Petrochemicals

RTG is providing technology support to olefin crackers, polymers, fibre intermediates, LAB and polyester. The focus areas include:
i)
ii)

Efficient asset utilisation
Development of specialty product grades/ materials/catalysts iii) Value-addition to by-product streams iv) Leveraging opportunities at the chemicals/oil interface Several projects in the following areas have been completed or are ongoing across the refining and petrochemicals businesses:
Product & Process development improvements Energy efficiency
Enhancing product value to customer
Product applications development
Catalyst development
Additive development
Automation technology

and

Biofuels and Biochemicals

The ‘Algae to Bio-crude’ effort aims at establishing a green platform, to harness natural resources, such as the freely available sunlight, the vast resource of sea water without competing for the limited freshwater sources and low cost nutrients (nitrogen, phosphorus) that will produce abundant quantities of biomass that can be converted to bio-crude. Research efforts on algae are focused on physiology, biochemistry, molecular biology, genomics, and development of technologies for algae cultivation, harvesting, upstream and downstream processing technologies for converting biomass to biocrude.
RIL is also developing Jatropha based biodiesel. The agronomy-based development efforts are helping to develop high-yielding and robust Jatropha cultivars that can be deployed over marginal lands. This initiative is expected to provide better and stable economic alternatives to farmers, who today have limited cultivation

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options and are exposed to price fluctuations of their produce. RIL is also partnering with global leaders in hybrid development and evaluating their hybrids in its research farms alongside their hybrids, with an objective of putting together best technology available worldwide.

India. An impressive array of advanced equipment (X-ray diffraction, mass spectrometers, chromatographs, nuclear magnetic resonance imaging, electron microscopes, infra red spectrometers, X-ray photoelectron spectrometers, rheometers, etc.) is available to researchers.

Breakthrough R&D –

This R&D centre focuses on catalysis, chemistry, process engineering, modelling, simulation, material science, synthetic biology, biotechnology, downstream polymer processing, reaction engineering, advanced analytical sciences and product applications.

RTG is focusing on the following areas:
i)

Metabolic flux analysis and pathway modification for production of biomolecules ii) Scale up of process in bioreactors iii) Polyester fabric waste recycling iv) Biomass deconstruction
v) Productivity improvement in agri-based biofuels. vi) Development of hybrids and improved production protocols R&D - Health Safety and Environment

RIL research has yielded benefits in sustainability, process intensification and HSE. Few examples on RTG’s initiatives related to HSE include the following:
RIL is in the process of commercialising a breakthrough technology in the production of LAB. Conventional technology uses hydrofluoric acid (HF) as a catalyst.
RIL’s new technology uses a proprietary ionic liquid in place of HF improving safety, reducing risk to the environment. Sulphur is a refinery by-product. In its elemental form, sulphur has limited use. RIL has developed a technology that increases the efficacy of sulphur as a fertiliser. It is estimated that Indian soils are
40% deficient in sulphur and RIL new sulphur fertiliser (RelFarmS™) will greatly improve agriculture productivity throughout India. RIL has also acquired specialty polymer technology from Agricultural
Research Institute and is exploring its application for sustained and slow release of water to the plants.
For more detail refer Director’s Report the technology absorption section on page no. 177.
R&D – Enablers

Infrastructure
The RTG has state-of-the-art R&D facilities in Navi Mumbai and across various locations as mentioned below:
Headquarters- Navi Mumbai R&D Centre:
The newly constructed Research Laboratory became fully operational last year. With a total area of 3,00,000 square feet including 1,20,000 square feet of laboratory space, the new laboratories are among the best equipped in all of

In its next phase, R&D infrastructure will include high throughput experimentation systems that significantly increase its ability to explore technology options and reduce the time for technology development.
Other Centres and Focus areas
R&D Centres Focus areas for R&D activities
Hazira
Polypropylene catalysis, and pilot scale testing Vadodara
Catalysts, adsorbents, organic chemistry, process development, applied biology and environmental science
Patalganga Polyester materials, processes, products, and applications
Jamnagar
Crude characterisation, process research, and pilot scale facilities for supporting refining operations and renewable energy technology development
Gagva
Water treatment and biotechnology
Samalkot
Biotechnology for biofuel
Naroda
Developing various performance properties for apparel fabrics and auto textiles
Chembur
Developing Polymer applications and
(Mumbai)
technologies
R&D – Personnel
RIL also runs initiatives and campus recruitment drives across universities and colleges to attract the fresh talent and the next generation of engineers and scientists. The total number of professionals working to support the research and technology activities under RTG is more than
800.
Patents

In FY 2014-15, total 22 patents were granted, in which, three for India, ten for USA, two for China, one for
South Korea, one for Indonesia, one for Taiwan, two for
Singapore, one for Nigeria and one for Poland.

R&D expenditure

(` in crore)
FY 2014-15

Capital
Revenue
TOTAL

722
498
1,220

FY 2013-14
810
408
1,218

FY 2012-13
738
380
1,118

FY 2011-12
654
335
989

FY 2010-11
203
314
517

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Product Stewardship

Reliance works towards increasing the recycling and reuse of materials, and thereby inculcating the 3R (reduce, reuse and recycle) philosophy into the production process.
It is Reliance’s constant endeavour to make products that have a positive impact on the environment and cater to consumer needs. Some of the instances of product stewardship are listed below:
Product Stewardship in Refining

The RIL’s DTA refinery at Jamnagar is producing unleaded gasoline, since its inception. A new benzene recovery unit is being implemented in the Jamnagar DTA Refinery, to reduce benzene from the FCC gasoline, and upgrade it to clean fuels of Euro III/Euro IV standards. This shall help to reduce environmental impact of these fuels at the end use stage. Product Stewardship in Petrochemical

i)

Promotion of Polyethylene (PE) Flexible Silo Bags for food grain storage to reduce wastage of grain

ii)

Promotion of Rice Husk PVC Composite Boards for construction and furniture application thus reducing the demand of wood

iii) Recron Green Polyester Staple Fibre which are made from 100% post-consumer waste PET bottles and have one of the lowest carbon footprint iv) Promotion of Polypropylene Raffia Bags in fodder packaging for improved milk production
v)

Enhancing PET recycle capacity by 11KT/year

For more information please refer Business Responsibility
Report, principle 2.

section ‘Financial Performance and Review’ on page
49 of Management Discussion & Analysis report followed by commentary on each of the major business. C) RISK MANAGEMENT AND INTERNAL
CONTROL
1. Introduction
Reliance actively stimulates entrepreneurship throughout the organisation and encourages its people to identify and seize opportunities. The current economic environment, in combination with significant growth ambitions of Reliance, carries with it an evolving set of risks. Reliance recognises that these risks need to be managed to protect its customers, employees, shareholders and other stakeholders, to achieve its business objectives and enable sustainable growth. Risk and opportunity management is therefore a key element of the overall
Reliance strategy. This section provides an overview of the key strategic risks, Reliance’s risk and control framework, and its approach to risk management.

2. Creating Value through Risk Management
Reliance operates in diverse industries and global markets, and therefore requires a balanced approach to risk management. An integrated system of risk management and internal controls, which is tailored to the specific segments of Reliance and its businesses, is deployed, taking into account various factors, such as the size and nature of the inherent risks and the regulatory environment of the individual business segment or operating company. This framework undergoes continuous improvements to allow Reliance to optimise its management of risk exposures, while taking advantage of business opportunities. 3. Reliance’s View on Risk
3.1 Risk Appetite

Reliance’s risk appetite is linked to its strategic approach and is based on the stance it has taken across four areas:

Recron Green polyester staple fibre
Product Stewardship in Retail

Reliance trends operates a state-of-the-art design studio, fully integrated with sampling and quality testing facility to improve quality and comfort for the customers.

4. Profit
RIL consistently endeavour to enhance shareholder value. RIL’s financial performance is explained in

Strategic and commercial: Reliance manages strategic risk in the pursuit of profitable growth in both mature and emerging markets. Given the volatile markets and economic climate in which it operates, the adaptability of its people, its service offering, and its infrastructure are key to manage its risk. Safety and operations: Reliance is committed to conduct all its activities in such a manner so as to avoid harm to employees and the community. It strives to deliver safe, reliable and compliant operations.

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Compliance and control: Compliance with laws and regulations is fundamental to maintain Reliance’s license to operate in the various industries that it operates in. Reliance also believes that accurate and reliable information provides a competitive advantage and is key to effective management of its business. It therefore accepts minimal risk in relation to reporting risks.

Mitigation: As a risk-mitigating strategy, Reliance continues to diversify its product portfolio and also develop new export markets. It is also investing in projects to strengthen cost competitiveness.
c.

Financial: Reliance manages financial risk to maintain a prudent financing strategy, even when undertaking major investment, and therefore taking controlled risks in this area.

Mitigation: The Group has defined a RMS and code of conduct that govern how all employees in Reliance operate. Compliance with these organisational policies, code of conduct, regulatory compliance requirements and other governance requirements, are key to protect Reliance’s reputation.

3.2 Risk factors

Reliance emphasises on those risks that threaten the achievement of business objectives of the Group over the short to medium term. An overview of these risks is provided hereafter, including the actions taken to mitigate these risks and any related opportunities:
i)

d.

Strategic and Commercial risks

a.

Prices and markets
Reliance’s financial performance is subject to the fluctuating prices of crude oil & gas and downstream petroleum products. Prices of oil & gas products are affected by supply and demand, both globally and regionally. Factors that influence the supply and demand include operational issues, natural disasters, political instability, economic conditions and many others. For example, lower prices will mean lower revenues for Reliance’s upstream production and as a result the long-term upstream projects may become less profitable. In addition, this may also have an impact on booked reserves. Prolonged unfavourable conditions could also result in cancellation of projects or impairment of assets.
Mitigation: Since Reliance operates an integrated hydrocarbon business, some of these risks can be offset by gains in other parts of the Reliance’s business. In addition, Reliance proactively hedge’s these exposures.

b.

Competitive forces
While Reliance seeks to compete on the basis of product differentiation, it operates in commoditytype markets. It is therefore, important to manage its costs, to ensure it has an edge in pricing over its competitors. Surplus refining capacity in India, augmentation of refining capacities by PSUs (Public Sector
Undertaking) and the additions of new refining capacity in Asia, notably in China and the Middle East, will increase competition in the region, potentially impacting GRM in its refining and marketing business.

Brand and reputational risks
As one of India’s leading brands, Reliance’s reputation is an important asset.

Political instability, acts of terrorism, government policies Social or civil unrest, in geographical areas where
Reliance operates, can have an impact on its operations. Potential developments that may impact its business operations include government pricing policy of petroleum products, piracy on high seas, any changes to Indo-US economic policy, acts of terrorism or civil unrest that may have an impact on safe operations of its facilities and transportation of its products.
Political unrest and tensions in the Middle East, North
Africa can cause short-term fluctuations in crude prices and crude availability.
Mitigation: To mitigate the risks resulting from nonavailability of crude and feedstock, Reliance has a diversified crude sourcing strategy from multiple geographies (Asia, the Middle East, West Africa, Latin
/ South America and North Africa) under both shortterm and long-term arrangements.

ii)

Safety and operational risks

a.

Changing technology and obsolescence risk
The changing technologies and the natural ageing of existing facilities pose the risk of production plants becoming obsolete and uneconomic. Aged plants are prone to unplanned shutdowns, increased maintenance and operating costs. Deployment of new technologies and ongoing maintenance processes are key to enhancing the reliability of operations and reduction in operating costs, while improving the safety of operating conditions by extending the useful life of assets.
Mitigation: Reliance utilises a dedicated Research &
Development function, which develops near term and incremental improvements, as well as step change improvements to existing products and processes. 87

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
b.

Cybersecurity risk
At Reliance, the use of information and telecommunication technologies is increasing, resulting in greater security threats to its digital infrastructure. A breach of its digital security or disruptions to its digital infrastructure, due to intentional actions, such as cyber-attacks or human error could lead to serious impacts to its businesses.
These impacts may include injury to staff, loss of control, impact on continuity or damage to assets and services, harm to the environment, the loss of sensitive data or information, legal and regulatory breaches and reputational damage.
Mitigation: Reliance continues to strengthen its responses to cybersecurity threats through proactive and reactive risk mitigations. These include, proactive activities to continuously improve its cybersecurity policies, standards, technical safeguard, ongoing monitoring of new and existing threats and IT security awareness initiatives. Its reactive responses to cybersecurity threats, which include IT disaster recovery, emergency response and business continuity management capabilities to enable the reduction of the impacts of a cybersecurity event.

c.

Major project execution risk
Reliance’s future growth plans depend upon successful delivery of major capital projects. Major capital projects include the Jamnagar project (cracker, gasification etc.), which is designed to deliver a step change in energy costs and increase the production capacity of ethylene and other downstream products at the complex, as well as the launch of a pan-India telecom infrastructure to provide 4G LTE TDD high speed wireless internet and mobile communication services. Delivery of these major projects is key to
Reliance’s future financial performance. Managing the risks related to the delivery of these and other major capital projects is key to enhancing Reliance’s long-term shareholder value.
Mitigation: Project risk management is embedded in the way Reliance delivers projects. These includes a specialised project delivery function with experience project management professionals, project risk modelling on a project-by-project basis, partnering with experienced vendors to execute complex projects and ongoing review and escalation of issues that undermine project success.

d.

Evolving Health, Safety, Security and Environmental
(HSSE) risks
Reliance is exposed to a wide spectrum of HSSE risks, given the diversity and complexity of the industries, it operates in. The exploration and production of oil and gas, transportation of the hydrocarbons and their further refining and processing is regulated by various
HSSE related regulations across the geographies where Reliance operates. A major HSSE incident, such

as fire, oil spill, security breach can result in loss of life, environmental degradation and overall disruption in business activities.
Mitigation: Reliance follows an HSE policy that ‘Safety of persons overrides all production targets’, which incentivises all employees to strive for excellence in safety management for the benefit of its employees, customers and the communities. Reliance has set it self the goal of ‘zero injuries and incidents‘. The
Group conducts HSSE audits to get assurance on
HSSE management framework protocols and regulatory compliances. iii) Compliance and control risks

a.

Reporting and estimation of provisions and reserves
The estimation of proved oil and gas reserves involves subjective judgements and determinations based on available geological, technical, contractual and economic information. These estimates may change depending on the availability of new information from production and drilling activities, or changes in economic factors like change in pricing of crude, projection of foreign exchange rates and natural decline in the field and unexpected geological complexity, among others. The published provisions and reserves may also be subject to correction due to errors in application of published rules and change in guidance. Any downward adjustment would indicate lower production volumes in the upstream business.
Mitigation: Reliance has a reserves assurance framework and process in place to ensure accuracy in reporting of reserves volumes.

b.

Regulatory compliance risks
The evolution of the global regulatory environment has resulted into increased regulatory scrutiny that has raised the minimum standards to be maintained by Reliance. This signifies the alignment of corporate performance objectives, while ensuring compliance with regulatory requirements.
Mitigation: Reliance recognises that regulatory requirements can at times be challenging, and therefore will:
Strive to understand the changing regulatory standards, so as to strengthen its decision making processes and integrate these in the business strategy of each of the industries in which it operates
Drive business performance through the convergence of risk, compliance processes and controls mechanisms to ensure continued operational efficiency and effectiveness

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iv) Financial risks

Treasury risks
Treasury risks include, among others, exposure to movements in interest rates and foreign exchange rates. Reliance also maintains sufficient liquidity, so that it is able to meet its financial commitments on due dates and is not forced to obtain funds at higher interest rates. It has access to markets worldwide and it uses a range of products and currencies to ensure that its funding is efficient and well diversified across markets and investor types.
Foreign Exchange risk
Reliance prepares its financial statements in
Indian Rupee (INR), but most of the payables and receivables of hydrocarbon business are in US Dollars, minimising the cash flow risk on account of fluctuations in foreign exchange rates. Reliance avails long-term foreign currency liabilities (primarily in USD, EURO and JPY) to fund its capital investments.

of conduct and behaviours together form the RMS that governs how Reliance conducts its business and manage associated risks.
Reliance has introduced several improvements to
Integrated Enterprise Risk Management, Internal
Controls Management and Assurance Frameworks and processes to drive a common integrated view of risks, optimal risk mitigation responses and efficient management of internal control and assurance activities. This integration is enabled by all three being fully aligned across Group wide Risk Management,
Internal Control and Internal Audit methodologies and processes.
Reliance’s risk management framework is designed to be a simple, consistent and clear framework for managing and reporting risks from the Reliance’s operations to the Board. The framework and related processes seek to avoid incidents and maximise business outcomes by allowing management to:

Reliance also avails short-term foreign currency liabilities to fund its working capital.

Understand the risk environment, and assess the specific risks and potential exposure for Reliance.

Mitigation: Foreign exchange risk is tracked and managed within the risk management framework. Short-term foreign currency asset – liability mismatch is continuously monitored and hedged. Determine how to deal best with these risks to manage overall potential exposure.

The foreign exchange market is highly regulated and Reliance ensures compliance with all the regulations. Interest rate risk
Reliance borrows funds from domestic and international markets to meet its long-term and short-term funding requirements. It is subject to risks arising from fluctuations in interest rates.
Mitigation: The interest rate risk is managed through financial instruments available to convert floating rate liabilities into fixed rate liabilities or vice-versa, and is aimed at reducing the cost of borrowings.

4. How Reliance manages risk
Reliance manages, monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives. The
Company has established the Reliance Management
System (RMS) as part of its transformation agenda.
RMS incorporates an integrated framework for managing risks and internal controls. The internal financial controls have been documented, embedded and digitised in the business processes. Internal controls are regularly tested for design and operating effectiveness. Reliance’s management systems, organisational structures, processes, standards, code

Manage the identified risks in appropriate ways.
Monitor and seek assurance of the effectiveness of the management of these risks and intervene for improvement wherever necessary.
Report up the management chain to the board on a periodic basis about how risks are being managed, monitored, assured and the improvements that are being made.
Group Risk Management Framework

The Group Risk Management Framework, is designed to help ensure risk management is an integral part of the way that Reliance works everywhere to enable risks to be identified, assessed and managed appropriately. The Group Risk Management
Framework comprises three levels:
Day-to-day Risk Management

Management and staff at Reliance’s facilities, assets and functions identify and manage risk, promoting safe, compliant and reliable operations. For example,
Reliance’s group-wide Operating Management
System (OMS) integrates Reliance requirements on health, safety, security, environment, social responsibility, operational reliability and related issues. These Reliance requirements, along with business needs and the applicable legal and regulatory requirements, underpin the practical plans developed to help reduce risk and deliver strong, sustainable performance.

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
DAY TO DAY
RISK MANAGEMENT

BUSINESS AND
STRATEGIC RISK
MANAGEMENT

OVERSIGHT AND
GOVERNANCE

Continuous at all
Operations & Functions
(e.g. Control of work,
Credit Risk, etc.)

Periodic at each Businesses,
Functional Leadership Level
(e.g. Risk Refresh Activity,
Risk Reporting, etc.)

Periodic at Board, Executive and Function Levels
(e.g. Board and Executive Team /
Committees, Functions’ independent view of risk, etc.)

Operate and manage risk and boundaries

Set expectations and boundaries and operate within them to maximise business outcomes

Results in safer operations risk reward outcomes
(e.g. Permit to work,
Expected Limits, etc.)

Integration of risk into key business processes
(e.g. Strategy, Business Plan,
Resource Commitments)

Business and Strategic Risk Management

Through Business Risk & Assurance Committees,
Reliance’s businesses and functions integrate risk into key business processes, such as strategy, planning, performance management, resource and capital allocation, and project appraisal. Reliance does this by collating risk data, assessing risk management activities, making further improvements and planning new activities.
Oversight and Governance

Reliance’s Board, along with executive and functional leadership provides oversight to identify and understand significant risks. They also put in place systems of risk management, compliance and control to mitigate these risks. Executive committees set policy and oversee the management of group risks, and dedicated Board Committees review and monitor certain risks throughout the year.
Reliance’s Group Risk team analyses the Group’s risk profile and maintains the Group Risk Management
Framework. Its Group Audit team provides independent assurance to the Board, through its
Committees, over whether the Group’s system of risk management and internal control is adequately designed and operating effectively to respond appropriately to the risks that are significant to
Reliance.

Endorse the responses to risks and

Results in Governance over Key Risks
(e.g. Risk in Group Plan,
Board/Exec. Risk Discussions)

technology for its advantage. This programme has seen concentrated efforts on three pillars a)
b)

c)

People – to build and sustain a human capital advantage Processes Systems & Data – to develop an integrated, end-to-end digital chain providing real time information Governance – to provide continuous assurance to all stakeholders The successful implementation of STAR will enable the institutionalisation of Reliance’s DNA to:
Create a new set of leaders who retain the best elements of what makes Reliance distinctive and take its business forward with new energy and entrepreneurship Create scalable frameworks and methodologies to extract full value from existing assets and quickly integrate and monetise new lines of business and acquisitions
Implement world class integrated processes and systems solutions to fully leverage existing and emerging technologies to allow Reliance to become more informed, effective and efficient

STAR Programme
People

D) SMART TRANSFORMATION AT RELIANCE
(STAR)
Reliance has been working to deliver a large scale, multi-year business transformation programme called STAR.
The STAR programme is an integral part of Reliance’s strategy to build competitive advantage and use

Strategy

Processes, Systems & Data
Governance

Goals &
Outcomes

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Till date Reliance successfully delivered integrated systems go-lives for the E&P business in April 2014 and for the R&M business in January 2015. The R&M go live was very large and complex and was delivered successfully without impacting business operations.
The scope included Jamnagar refinery and included
Petrochemicals activities at the site. With these go-lives Reliance has made substantial progress to automated processes, reducing manual effort and improving controls and transparency through an end-to-end digital chain.

Coverage of STAR
STAR covers three businesses, Refining & Marketing,
Petrochemicals and Oil & Gas Exploration & Production, and support functions such as Manufacturing, Projects,
Procurement & Contracting, Logistics, Human Resources
(HR), Finance, Information Technology (IT), Research and Development, Corporate Security, Governance &
Integration (G&I), Risk and Audit.

Progress during the year
Successful transformation requires vision, leadership, dedication, discipline and teamwork sustained over a multi-year timeframe. Reliance continues to meet this criteria for the STAR project which is unique and unparalleled in both scope and outcome. Significant progress being made across the entire agenda during
FY 2014-15 with the following highlights.
1.

People

Reliance has taken strong steps forward in its HR
Transformation, a key part of its STAR Business
Transformation programme. Under the banner of
‘R-HR Transformation’, the programme is steeped in a desire to drive both a culture change in Reliance and to embrace new business processes used by the world’s leading companies. The objective of this transformation is to achieve Reliance’s vision of being:
“A modern, progressive people environment, where purpose-driven talent are attracted and motivated by a consistent meritocratic HR framework and where high quality leaders capable of realising RIL business goals are identified, encouraged, and rewarded.”
Significant progress
FY 2014-15.

has

been

made

during

Reliance launched new ‘Values & Behaviours’
Implemented new processes for employee objective setting and performance management
This better aligns corporate and individual performance and rewards
Implemented improved Talent Management processes Started to develop new Leadership Development and Learning programs
2.

Processes, Systems and Data

Reliance started with the aim of seamlessly integrating and systems enabling all of its processes. To achieve this Reliance mapped all of the key processes in detail.
These processes were then integrated and optimised with the aim to technology enable them through a series of system go-lives.

3.

Governance

The way Reliance conducts its business has evolved over the decades, both at the individual business and the group levels. In FY 2014-15, Reliance launched the RMS which formalises the governance framework in a transparent manner and codifies the way work gets done at Reliance. The RMS encompasses the policies, processes, tasks, behaviours and other aspects of the Company and is organised across four areas: Purpose and Values
Group Strategy, Financial Framework and ‘How
We Manage Risk’
‘How We Organize and Manage the Company’
‘How We Verify’ that the business is operating and performing as it should
The RMS establishes clarity and a common understanding of the way Reliance operates. Reliance has created a new function called Governance & Integration to ensure RMS governance processes, frameworks and content is kept current and that all elements of RMS are aligned and integrated. Focus for next year
The focus for FY 2015-16 will be to:
Embed and operationalise a full cycle for governance within the new RMS framework
Complete the full implementation of the people R-HR
Transformation projects
Implement systems go-lives
Petrochemical businesses

for

remaining

When fully deployed, Reliance’s goal is that all of these transformation projects will create a foundation to support and enable Reliance to be among top-50 Company in the
Fortune 500 list by 2020, with a ‘most admired company’ status in India.

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MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

RIL’s Chairman and Managing Director Shri Mukesh D. Ambani being conferred the honorary Doctor of Science degree by ICT

AWARDS AND RECOGNITIONS
Some of the major awards and recognitions conferred on
Reliance during FY 2014-15 are:

Leadership
RIL’s Chairman and Managing Director Shri Mukesh D.
Ambani was conferred the Honorary Doctor of Science degree by the Institute of Chemical Technology (ICT)

Corporate Social Responsibility
Awarded the ‘Corporate Social Responsibility
Company of the Year’ for the second consecutive time in the Asia Oil & Gas Awards 2015, organised by Oliver
Kinross
Awarded the ‘Best CSR project in environment management forestry /horticulture & Best CSR
Innovation Award’ by Institute of Chartered
Accountants of India (ICAI)
Won the ‘Best Corporate Social Responsibility
Practices Award’ and the ‘Best use of Corporate Social
Responsibility practices in Manufacturing Award’ at the 3rd Global CSR Excellence and Leadership
Conference of the World CSR Congress

Quality and Excellence
Won three Par Excellence and one Excellence award under Quality Circle (QC) and Lean QC category respectively at the National Convention 2014 of the
Quality Circle Forum of India (QCFI)
Won the Par Excellence Award at the National
Convention of Quality Concepts (NCQC)
Received the ‘Best-in-Class Award’ from Asia Pacific
Quality Organisation (APQO)
Received Par Excellence award at National Quality
Circle Convention-2014 and Gold awards at Annual
Convention on Quality Concepts (ACQC) organised by QCFI
Received the esteemed ‘Golden Europe Award’ for
Quality & Commercial Prestige at the convention organised by Otherways Management & Consulting
Association (OMAC)
Received the ‘Gold Award’ at the International
Convention of Quality Control Circles - 2014 (ICQCC)
Won two Par Excellence awards in Kaizen by Quality
Circle Forum of India
Won the ‘Gold Award’ at the Annual Convention on
Quality Concepts organised by QCFI

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Best Corporate Social Responsibility
Practices 2014

Won the Diamond Award and “Gold Award” at the
Annual Convention & Competition on Lean Six Sigma
Convention

Projects and Engineering
Received ‘Bechtel’s Award for Quality Engineering’ for its off-site and utilities engineering

Health, Safety and Environment
The Floating Production Storage and Offloading
(FPSO), Dhirubhai-1 platform, received the
‘Best Overall Safety Performance’ in the offshore production platforms category in 2014
Awarded as the ‘HSE Company of the Year’ at the Asia
Oil & Gas Awards 2015, organised by Oliver Kinross
‘Gold Award in Arogya World Healthy Workplace
Award 2014’
Awarded the ‘Golden Peacock Occupational Health &
Safety Award’ for the year 2014
Awarded the ‘Golden Peacock Environment
Management Award’ for the year 2014 th Won the 13 annual ‘Greentech Safety Award 2014’
Won the 15th annual ‘Greentech Environment Award
2014’
Won the first position in the ‘Green Warrior’ competition organised by Times of India

Energy and Water conservation / efficiency
Awarded ‘Excellent Energy Efficient Unit Award’ at the
CII National Energy Efficiency Summit
Received 1st prize in Petrochemicals sector in National
Energy Conservation Award - 2014 by Bureau of
Energy Efficiency

Diamond Award and “Gold Award” on Lean Six Sigma

Human Resources, Learning and Development
Awarded the ‘Golden Peacock National Training
Award 2014’ at the Golden Peacock Awards

Retail
Recognised as the ‘Best Brand’ in the Consumer
Electronics and Appliances Retailers category by The
Economic Times Best Brands 2014
Franchise India Retail Awards 2014 - CDIT and
Telecommunications Retailer
Awarded the ‘Most Admired Retailer’ of the Year Large Format as well as Private Label by Images Retail
Awards 2014
Ranked among the ‘Most Trusted Service Brands’ in
India by Brand Equity
Award for ‘Marketing Excellence in Retail Sector’ given in the field of Marketing Dynamics towards a sustainable tomorrow and continuous marketing practice in Retail
Award for ‘Best Diamond Jewellery’ of the Year from
National Jewellery Awards 2014, in Vogue and Bridal category Sustainability
Won the ‘CII-ITC (Confederation of Indian Industry)
Sustainability Award 2014’
RIL ranked as India’s Greenest Company in a survey of 500 global majors conducted by The Newsweek in partnership with Corporate Knights Capital. Ranked at 185, RIL is the highest ranked Indian company among the World’s Greenest Companies

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Annual Report 2014-15

REPORT ON CORPORATE SOCIAL RESPONSIBILITY

Children at Gadimoga

CORPORATE SOCIAL RESPONSIBILITY AT RIL
At RIL, Corporate Social Responsibility (CSR) is embedded in the long term business strategy of the Company. For
RIL, business priorities co-exist with social commitments to drive holistic development of people and communities.
The Company’s CSR initiatives help elevate the quality of life of millions, especially the disadvantaged sections of the society.
It seeks to touch and transform people’s lives by promoting healthcare, education and employment opportunities.
RIL aims to continue its efforts to build on its tradition of social responsibility to empower people and deepen its social engagements.
Corporate Social Responsibility Philosophy: The
Company’s initiatives support inclusive growth.

Focus Areas of Engagement
For a company with diversified businesses like RIL, there are several opportunities to increase and deepen social impact significantly and generate value for all. RIL seeks to strategically consolidate the Company’s CSR initiatives to focus on discrete social problems and enable people to earn their livelihoods. To streamline its social initiatives, the Company, in its CSR policy, has identified six focus areas that aim to positively and holistically impact society.
RIL’s six focus areas comprise:
Rural Transformation
Healthcare
Education
Environment

Protection of National Heritage, Art and Culture
Disaster Response
For more information please refer CSR policy http://www.ril.com/getattachment/d5fd70ef-e019-47e5bb83-de2077874505/Corporate-Social-ResponsibilityPolicy.aspx RIL has undertaken numerous initiatives aimed at developing the communities around which the Company conducts its operations. The overriding objective is to create value and ensure all inclusive growth.
RIL is working assiduously to ensure that economic wealth is not just limited to the privileged, but distributed in a manner that benefits the marginalised sections of society.
The Company has made significant contributions to help shape India’s vision of inclusive growth. Sustainable development strategies have helped RIL to create thriving eco-systems towards profitable growth and creation of societal value for multiple stakeholders. RIL goes beyond its business activities to create societal impact through its diverse initiatives.
The Company has been involved in various social responsibility initiatives over the decades. In 2010, these activities were brought under the Reliance Foundation (The
Foundation), the umbrella organisation for the Company’s social sector initiatives. Through these initiatives, the
Company engages with communities to ensure their well-being by enhancing access to quality education and healthcare, capacity building for employment generation, access to good infrastructure and ecological conservation.

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CSR Expenditure
(` in crore)

FY 2014-15

FY 2013-14

FY 2012-13

FY 2011-12

FY 2010-11

Rural Transformation

126.33

165.72

73.10

21.69

28.35

Healthcare

608.25

416.69

140.72

91.03

46.99

Education

21.80

80.76

66.71

75.06

91.01

Environment (Greening activities)

0.42

0.52

1.20

2.15

0.76

Others

3.78

48.03

69.27

61.34

34.23

TOTAL

760.58

711.72

351.00

251.27

201.34

RURAL TRANSFORMATION
The Foundation has been making systematic efforts at bridging the country’s rural-urban development gap.
The Foundation’s strategy combines a judicious mix of technology, material and information with specific focus on agriculture and marine fisheries. It is currently working with over 94,000 rural households.

Livelihoods
The Foundation works on enhancing opportunities and disseminating information relevant to improving livelihood options among rural communities. It deploys locally-relevant solutions to promote agriculture, marine fisheries and other farm and non-farm based activities.
Systematic efforts are taken to improve the quality and productivity of assets leading to increased and more reliable yields. 17,902 hectares of land has been enriched in FY 2014-15 (48,913 hectares since inception). Location specific information is provided to fisher folk to help them effectively plan their sea routes, navigate directly to fish aggregation zones and return with heavier hauls in lesser time. 10,489 advisories (14,274 since inception) were disseminated to farmers and fisher folk through 54, 59,347 calls .
The Foundation focuses on building the capacity of communities that it works with. This initiative starts from the time that the Foundation engages with them by ensuring their participation in the resource mapping and planning exercise. More than need-based training, programmes have been conducted to further enhance the skills and knowledge of 1,87,415 small and marginal farmers, women and fisher folk. Trainings on sustainable agricultural

practices, soil and water conservation, pest management, feeding and fodder management for livestock, use of organic fertilisers, GPS handling, hygienic handling of fish, sea safety etc. have been imparted.

Silaging with Polypropylene Flexible
Intermediate Bulk Containers (PP FIBCs)
RIL has assisted dairy farmers in Punjab and Haryana by implementing education programmes on silage production/preparation and how to bag the silage using polypropylene flexible intermediate bulk containers known as PP FIBCs. The training produced solutions to problems faced by farmers, such as low milk yield, acute scarcity of fodder and a lack of knowledge among farmers on how to make silage.
The programme redesigned bag sizes found in the supply chain, thereby increasing delivery speed and promptness.
RIL also supplied the farmers with free sample bags and cattle feed for the programme’s first 40 days. The programme also brought in world-class fodder seed supplies to the farmers.
There were a number of key innovations that this programme brought about, namely the use of antirodent bags, applying a redesign of the FIBC so that the inner lining was laminated, eliminating the use of liners
– leading to operational convenience. The benefits of the programme were substantial. Surplus fodder that would have otherwise gone to waste was made into silage, and a silage bank was set up for times of need.

CSR expenditure

3.35% of profit after tax Spent on
Corporate Social Responsibility

PP FIBC Bag

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In a cost/benefit analysis, it was seen that the initial investment was very low compared to conventional silage pits. Silage bags ensure zero maintenance cost, which can be transported from fodder surplus to nil fodder districts.
The programme also received a number of awards for its work, including letters of product acceptance and certifications received from government departments, such as the Animal Husbandry Department (AHD) in
Punjab and Haryana.
Similar programmes have been implemented in Rajasthan by Rajasthan University of Veterinary and Animal Science
(RJUVAS) and 17 other states.

Non Woods Forest Products (NWFP) such as Kendu leaf,
Mahula and Broom, for their survival. The Foundation, with the support of Village Farmers Association (VFA) leaders, has opted for the Janata Accidental Insurance Policy of the National Insurance Company for hapless villagers. The policy insures individual villagers for an amount of ` 1 lakh against a premium of ` 60. The Foundation also organised a policy related discussion in one of the district’s villages where farmers from nearby seven villages participated.
Through this initiative, the Foundation has already helped
613 insured farmers. Another 836 farmers are in the process of getting insured.

Polypropylene Nonwoven Fruit Cover for
Pomegranates
RIL has assisted various pomegranate farms in Karnataka and Maharashtra in dealing with problems of low fruit yield and low productivity, insects and pests, poor quality fruit, and wastage.
Through the programme, farmers were educated on fruit bagging through various media such as case study presentations, and practical demonstrations. The programme redesigned the bag size used to hold the produce in order to fit with the quality and size of said produce. RIL also created a supply chain for quicker delivery of the bags.
There were challenges faced during the implementation of the programme, such as tying the cover over individual fruit which was a major issue, fruit ripening, and the availability of readymade fruit covers with the right kind of materials for easy retrieval.
However, despite these challenges, the programme was successful in significantly increasing productivity and yield, going up 10 MT per hectare. Fruits produced were of a more uniform size and deeper red colour, and the general quality also increased such that the fruit was fit for export. As a result, the average price fetched by the pomegranate also increased by 20%.

Social Security for Villagers of Balangir District
The Foundation has initiated a life insurance programme for villagers of the Balangir district of Odisha. It is an attempt to provide a social security net to the villagers of the district against accidents and threats, such as falling from tree and snake bites. The medical camps have been organised and the villagers have been educated on social security tools including insurance.
Balangir District is one of the poorest districts of India and is globally known for its poverty, drought and migration.
Predominantly an agrarian district, with more than 70% of the population dependent on agriculture for their livelihood. The villagers face various threats while collecting

Beneficiary of the Foundation’s Initiative

Food and Nutrition Security
The Foundation directly engages with small and marginal farmers and promotes sustainable agricultural practices to transform their lives. Large patches of fallow land is being transformed, enriched and brought under cultivation with an increase in the crop yield through the adoption of practices, such as mixed cropping, integrated pest management and the use of farmyard manure and rainwater conservation efforts. 10,379 kitchen gardens
(26,671 since inception) called Reliance Nutrition Gardens have been constructed this year among rural households to supplement their nutritional intake.
All these initiatives have helped improve productivity, food and nutrition and self-sufficiency among the marginalised communities. Water Security
The Foundation’s engagement with farmers is spread across multiple agro-ecological sub regions with issues

Rain water harvesting

447 lakh cubic meter of rain water has been stored for irrigation for communities

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of poor soil quality, dependence on rain, low productivity and poor accessibility to services. Together with farmers, the Foundation has developed water harvesting structures that are critical sources of irrigation for these communities living in dry and rain-fed areas, and created capacities to harvest and store 203 lakh cubic metres of rain water in the last one year (447 lakh cubic metres since inception).

Leveraging Knowledge and Institution Building
RIL partners with knowledge providers, research institutions, line departments, NGOs and others for relevant information and disseminates it to those who need it. The Foundation currently has 456 knowledge partners across different states.
A knowledge base is created by collating queries asked and solutions provided, thereby creating a repository of local knowledge that can be used going forward.
Collecting, processing, packaging and disseminating demand-driven multilingual information, aligned with local context and culture in multimedia formats, helps to overcome language and literacy barriers. Rural communities are involved through multiple interactive information dissemination programmes, including a helpline on which they can call. Feedback is also obtained from fishermen and farmers who benefit from the various information dissemination programmes.
The Foundation encourages participation from communities for planning and decision-making, where it is intervening through the formation of Village Farmers’
Association (VFAs). 504 such VFAs have been formed where farmers participate in decision-making processes and develop individual as well as community development plans. There is a lot of emphasis on building capacities of communities. Farmers are trained in best practices and are encouraged to adopt them. Institution-building efforts and promotion of self-governance through VFAs encourage farmers to come together and engage in collective decision making. The programme also promotes the involvement of women and the most marginal farmers in a village, for whom VFAs have become a platform where their voices are heard.

Sir HN Reliance Foundation Hospital and
Research Centre
Located in the heart of South Mumbai, the hospital in its
90th year, has been completely rebuilt by the Foundation, led by its Chairperson, Smt. Nita M. Ambani into a very modern 19-storey tower and two heritage wings.
Founded in 1925 as Mumbai’s first general hospital, it has a rich heritage. The hospital celebrated its silver jubilee with Sardar Vallabhbhai Patel as its chief guest and the
Golden Jubilee celebrations were graced by Jayaprakash
Narayan. During the pre-independence period, it treated many freedom fighters, including the Father of Nation,
Mahatma Gandhi.

Sir HN Reliance Foundation Hospital and
Research Centre at Mumbai
The hospital has collaborations with John Hopkins, MD
Anderson Cancer Centre, Massachusetts General Hospital and University of Southern California. This hospital has state-of-the-art operation theaters equipped with robotic surgery and on-line video conferencing enabling live consultations with specialists across the world, India’s first hybrid cath-lab for emergency heart operations, state-ofthe-art diagnostics facility with Asia’s first new generation
CT scan. The hospital is equipped with high-end Obstetrics
& Gynaecology services and Neonatal Intensive Care Unit
(NICU) and a learning centre, adapting the Millennium
Development Goals.
The general wards of the hospital will have the same level of treatment for the citizens at the bottom of the pyramid.
The hospital has adopted water recycling and rainwater harvesting making it the greenest healthcare facility in
India of its size.

HEALTHCARE
Over the years, the Foundation has been working towards enhancing India’s access to quality and affordable healthcare. The Foundation’s integrated healthcare model aims to reach out to the most vulnerable sections of society, through a network of healthcare delivery mechanisms and awareness and diagnostic specialty camps. It is committed to contributing towards the nation’s efforts in achieving the Millennium Development Goals of the United Nations and aims to support the efforts, especially in the field of maternal and child health care.

Reliance Anti-Retroviral Therapy Centre

+3,000 patients benefited at Dhirubhai Ambani Hospital

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Dhirubhai Ambani Hospital
Envisioned and inaugurated on 1st October 1998 by our beloved Founder Chairman Late Shri Dhirubhai Ambani, the Dhirubhai Ambani Hospital with its moto “Seva
Paramo Dharma” has been striving relentlessly to provide comfort, care and cure to the population in the vicinity and beyond.
With the development of Mumbai-Karjat-Khopoli-Pune corridor, the increase in traffic has intensified the need for emergency care of road traffic victims. The hospital by virtue of its strategic location, finds itself in a position to offer this care in the hour of need.
The 82 bed hospital, with its various specialised units such as ICU, NICU, maternity, surgical, medical and orthopaedic services, offers comprehensive care to its patients.
Availability of pathology laboratory and radiological services including CT scan and Ultrasound complement the diagnostic services.
Apart from a dedicated team of full time specialists and generalist doctors, a team of specialist doctors are on visiting role to care for complex patient needs.
An Operation Theatre (OT) complex with 3 Major OT and one minor procedure OT with an Endoscopy suite are in service. As part of a very strong focus on CSR, a number of initiatives are in place and are widely accepted by the community by which a large number of patients benefit on a day to day basis. During FY 2014-15, free and subsidised medical care including trauma care was provided to residents of surrounding villages (a total of 1,362 patients from the vicinity). A major CSR activity is for the Reliance Anti-Retroviral
Therapy (ART) Centre being run at the hospital with
National Aids Control Organisation (NACO) and
Maharashtra State Aids Control Society. The centre provided over 3,000 HIV/AIDs patients with free consultation, counselling, investigation and treatment till
31st March 2015.
An annual ophthalmology camp in association with the
Lions Club provided free cataract surgery at the Dhirubhai
Ambani Hospital to 105 patients. 157 patients benefitted for a general health check-up that was conducted in association with primary health centre at Ajivali.

Specialised Care for HIV/AIDS
Two dedicated ART centres at Hazira and Patalganga have reached out to people affected by HIV/AIDS through more than one lakh patient consultations since inception.
The centres offer comprehensive care in the form of counselling, testing and medicines for anti-retroviral therapy. Project Hope, operational since 2006 in Hazira, provides free nutritional kits and medical support to the HIV infected children. Under this programme, over 100 HIV infected children, mostly orphaned due to death of their parents from HIV/AIDS, are enrolled and getting free nutritional supplementary support every month.

Primary and Preventive Healthcare
The Foundation addresses the primary care needs of the serving population through four static medical units in Mumbai and six mobile medical units at selected locations in Mumbai, Uttarakhand and Madhya Pradesh.
The interventions cater to the primary and preventive healthcare needs of the underprivileged rural and urban people. Six fully-equipped Mobile Medical Units (MMUs) with state-of-the-art technology, including cloud-based software to store patient information, serve the communities. The MMUs reach out to those in need and provide necessary care free of cost at the doorstep through periodic visits. 75,510 patient consultations
(1,49,439 since inception) have happened during the year across Mumbai, Uttarakhand and Madhya
Pradesh. Static Medical Units across Mumbai provide diagnostic facilities along with consultation and a focus on chronic diseases like hypertension and diabetes.
Professional and trained MBBS doctors, nurses and social workers cater to the primary medical care needs of patients.

Care and Compassion for the Elderly
Through these health initiatives in Mumbai, 4,00,288 individuals from 1,09,333 families have been enrolled to receive medical care since inception. Around 80% of these families earn less than ` 1 lakh annually. About
40% of these families were previously utilising services of pharmacists or non-MBBS doctors in the vicinity for healthcare needs. The Foundation’s intervention has now provided them access to services from a qualified medical doctor. RIL is committed towards ensuring that pertinent issues such as health and safety are not just restricted to the
Company’s employees, but that the same care and concern

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is meted out in the community in which they operate. The
Company has undertaken a slew of initiatives at not just the corporate level, but also at the plant level in order to ensure that their responsibility is extended to all strata of the society. The Company has set up numerous community medical centres near most of its manufacturing divisions in order to provide comprehensive healthcare services to local villagers.
The community medical centre at Motikhavdi, Jamnagar has been providing comprehensive medical services free of cost since its inception in 1995. It operates round the clock and is equipped with doctors and para-medics, medicine counter male and female wards for day care procedures. Accessible Eye Care for the Marginalised

Technology in Healthcare

A dedicated state-of-the-art and ultra-modern ophthalmology Mobile Eye Clinic facility has been launched at Motikhavdi, Jamnagar. The clinic is fully equipped to perform eye check-ups, lab tests and dispense medicines. An Optometrist, along with a Paramedic, visit the nearby villages and provide services.

The Foundation and the University of Chicago have entered into an innovative collaboration that will use technology for training, competency evaluation and clinical decision support. The collaboration is aimed at improving clinical diagnosis and supporting doctors in real-time and evidence-based clinical decision making.

Numerous awareness sessions on diabetes along with screening camps were organised in the neighbouring villages of all the sites.

The programme will implement cloud-based software applications to train medical professionals through virtual patients and state-of-the-art clinical reasoning tools. These tools will help reduce diagnostic errors and could help in saving millions of lives globally. The programme will be piloted in the Foundation’s Sir HN Reliance Foundation
Hospital and Research Centre in Mumbai. The Foundation aims to enhance access to quality healthcare in India.

Health awareness camps for pregnant women and lactating mothers was organised at Kakinada which focused on creating awareness for mothers and mothersto-be on various aspects of health care - pre natal and post natal, early childhood education and preventive steps to be taken against spread of seasonal diseases. More than
150 women participated in the camps.
A health awareness programme exclusively for adolescent girls of 12 to 15 years was conducted at Bhairavapalem
Govt. High School, which focused on personal hygiene and nutrition for the adolescent girls.

Health Camps
The Foundation organises multi diagnostic health camps that not only provide services for chronic and other diseases, but also help raise awareness among the population. 70 health camps providing specialised care for diabetes, hypertension, cardiac ailments, bone and mineral density, ophthalmology among others, were organised during the year.

EDUCATION
Dhirubhai Ambani Scholarship Programme
Launched in 1996, the Dhirubhai Ambani Scholarship
(DAS) programme has been working towards Shri
Dhirubhai Ambani’s vision of creating future leaders from
India’s youth. This scholarship is awarded to meritorious students with demonstrated needs for financial support and to the specially abled meritorious students. This year,
399 students, including 110 specially abled children were selected to form the 18th batch of Dhirubhai Ambani
Scholarship Programme.

Dhirubhai Ambani International School

Reliance Foundation Drishti

Dhirubhai Ambani International School (DAIS), Mumbai, prepares students for the ICSE, the IGCSE and the IB
Diploma Examinations. The school is also a member of the
Cambridge International Primary Programme.

The Foundation’s Drishti programme is engaged in improving the vision of visually impaired from underprivileged segments of society. Over 14,000 corneal transplants have been done of which 1,200 were done this year. An international braille newspaper is published every fortnight which reaches thousands of visually impaired readers across India and 17 other countries.

The school’s mission is to provide a learning environment that encourages children to bring out the best in themselves. It supports their all-round development by helping them discover the joy of learning, awakening and illuminating their intellect in multi-dimensional ways, and instilling abiding values in themselves.

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Over the years, the school has achieved the highest standards of excellence on all performance parameters. It has evolved as one of the most admired schools in India and the world. In 2014, Education World ranked DAIS as the
No. 1 International School in India across all categories for the 2nd consecutive year. The school was ranked No. 1 on crucial parameters of ‘academic reputation’, ‘competence of faculty’, and ‘teacher welfare and development’. The
Hindustan Times - C Fore Top Schools Survey has ranked
DAIS the best school in Mumbai in 2012, 2013 and 2014.
The school has received highest ratings for ‘teachers’ and
‘academic rigour’.

their choice. A total of 207 poor meritorious students were selected in the scheme for the academic year 2014-15 with a budget of ` 1.15 crore.

The students have consistently achieved outstanding results across all three curricula – the ICSE, the IGCSE and IB
Diploma. The 10th batch of IB Diploma, the Class of 2014, earned an average of 39.42 points (out of the maximum possible score of 45). Generally an average of 30-32 points is considered to be excellent for any good IB world school.
From the class of 2014, six students obtained the perfect score of 45 points. This score was achieved by only 208 children worldwide. The IB results place DAIS among the top five international schools globally.

Keeping in view the need to improve personal efficiency in studies, RIL also organised a motivational counselling for the Reliance Dhirubhai Ambani Protsaham students at Sri Suryakalamandir Kakinada. Over 350 students of first and second Inter Protsaham students attended the programme. Students belonging to poor families get a chance to study at the best of the corporate colleges. With the current year’s admissions, the cumulative total of students supported under the scheme has gone up to 1,533 students. Since
FY 2010-11, RIL also has been providing financial aid to the deserving toppers (among Protsaham recipients) for pursuing their higher studies in engineering and medical streams. The IB Diploma graduates from the Class of 2014 have earned admissions in 21 of the top 25 global universities like Oxford, Cambridge, MIT, Harvard, Stanford, Brown,
Imperial and Columbia, to name a few. Many top-tier universities have offered scholarships to the students.
Some of the School’s IB graduates have also joined India’s leading colleges.
In 2014, 87.50% of IGCSE grades achieved were A+ and A grades. Each year, students have topped the world and in
India in several subjects. In 2014, of the 27 IGCSE world toppers in India, three are from DAIS. In 2014, the School’s average ICSE score was 94.86% - 28 out of 30 students have scored more than 90% and the ICSE topper scored
98.40%.

Reliance Dhirubhai Ambani Protsaham Scheme
A flagship CSR initiative in its own right, Reliance
Dhirubhai Ambani Protsaham financially supports poor and meritorious students (Class X pass-outs) from the East
Godavari District. Recipient students of this scheme get admissions in corporate junior (intermediate) colleges of

Reliance Dhirubhai Ambani
Protsaham Scheme

1,533 students supported under scheme

Counselling Programme for Students of Reliance
Dhirubhai Ambani Protsaham Scheme

Education for All
The Education for All initiative was launched to enhance the access to quality education in India. The Foundation supports this initiative and has been working in the areas of education for the underprivileged, girl child and life skills for the specially abled. Through partnership with several NGOs, the Education for All initiative has positively influenced the lives of over 70,000 underprivileged children during the last few years.

Reliance Foundation Jr. NBA
The Reliance Foundation Jr. NBA programme, a comprehensive school-based youth basketball programme has reached more than 1 million youth in
India since its launch in 2013. Through this collaborative programme, the Foundation is committed to igniting in millions of youth a passion to explore and enjoy sports.
The programme promotes health, fitness and an active lifestyle through basketball, and teaches the values of the game such as teamwork, sacrifice, discipline, dedication and sportsmanship.

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Reliance University
The Foundation is planning to setup a world class, multidisciplinary University in Maharashtra soon. The University will provide an enabling environment and cutting edge research facilities.

Promoting Education – People with Disability
The Foundation supported Vishwas School in Haryana for carrying out various initiatives including a series of expansion plans aimed towards promoting education and enhancing quality of education to children including those with special needs.
The Early Intervention & Rehabilitation Centre at Tallarevu has been facilitating and enhancing the development process of children with speech and hearing impairment during early childhood stage and shaping their skills, behaviours and personality to fight against physical challenges. The Centre offered services to specially abled children.
It also periodically identifies the needy children with different disabilities and motivates them to access its services center. The Centre is equipped with play way material and special education appliances. It also provides special training on therapeutic needs of children, apart from conducting community awareness programmes on disability, improved personal, educational and vocational skills of special children. It is a matter of pride for us that six special children from the Centre were mainstreamed into formal education so far.
Career counselling sessions were organised in Jhajjar,
Haryana and Shahdol, Madhya Pradesh. Over 340 students participated in and benefitted through the sessions.
The sessions involved one-to-one counselling as well as screening of motivational films and presentations. RIL is also running coaching classes in three high schools & one middle school (Changera) in Shahdol where 508 students have been registered.

Sanskar Shibir
Sanskar Shibir is a regular activity organised by RIL.
Sanskar Shibir is a concept of enjoyable learning for school students. It is also a demonstration of interactive teaching method for school teachers. Sanskar, synonymous with excellence in education equips its pupils with all the requisite skills to be tomorrow’s leaders with a critical and global outlook.
Sanskar Shibir involves activities which provides opportunities for skill based activities that contribute to the development of an all-round personality.
The children are exposed to intellectual and social experiences that are unique in their richness of quality, variety, relevance and depth. The focus is on the three-

fold development of children in all the three domains namely psychomotor (physical) cognitive (intellectual) and affective (emotional & social).

Self-Development Training Programmes for local students
As part of student development initiatives, a training program on self development was organised for the
Pedavalasala youth to sensitise the local youth on various soft skills and to explain them the importance of personal development. The participants were explained about communication skills, career planning and effective social relations. The Foundation set-up a Skill Development Centre in order to provide basic education to children, this has been initiated at Allahabad with the assistance of the employees including IT team. The main purpose for setting up the centre is to offer free computer education to marginalised students from the neighbouring villages.

Skill Development Center at Allahabad

Training to the Local Womenfolk on Tailoring
As part of facilitating economic empowerment among womenfolk, tailoring training programmes were initiated for women of Gadimoga and women from Bhairavapalem villages. The training covered the basics of tailoring. All the trainees were provided with sewing machines for establishing their own ventures.

EDUCATION INFRASTRUCTURE
Village Knowledge Centre (VKC) at Gadimoga village As part of the youth empowerment initiatives, RIL started
Village Knowledge center at Gadimoga village. The aim of starting the center is to give opportunity to unemployed youth, to get access to various books, magazines, news papers, periodicals, etc. so as to enable them to gain knowledge and prepare for different competitive examinations. This facility helps aspirants of jobs as well as higher studies.

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Computer Lab, Science Lab and School Furniture at Ramakrishna English Medium School
RIL focuses on providing quality education aligned with technology to school children. With a view to implement the ideology, RIL sponsored a computer lab, laboratory facilities (Physics, Chemistry and Biological Sciences) and school furniture to Ramakrishna Public School, Kakinada.
About 800 poor students benefited from this initiative.

Computer Aided Learning Centre in Tribal
Welfare Girls Ashram School, Rampachodavaram
With a view to promote quality education to girl child in tribal areas, RIL extended support to the Tribal Welfare
Girls Ashram School, Rampachodavaram by providing a
Computer Aided Learning Center Facility in the school with computer systems and with all necessary infrastructure and digital class room contents, both in Telugu and
English medium.

of 482 (1,394 since inception) biogas plants in rural households during the year. The shift to using a cleaner fuel has led to reduction in indoor pollution thereby resulting in improved health of women and families.
Additionally, during the year, 7,679 composting facilities
(17,968 since inception) have been created across rural households to convert waste into organic manure and reduce dependence on chemical fertilisers. In an effort to promote bio-diversity and preserve the environment,
4,97,238 saplings (17,31,243 since inception) have been planted across the intervention areas during the year.
1,63,535 tonnes of soil has been conserved, thereby ensuring sustainability.

Computer Labs in Shahdol

The Foundation aims to focus on enhancing quality of life for all, in India’s rapidly growing urban areas. The
Foundation has been actively examining transformative approaches to planning for enhancement of public spaces and has partnered with municipal bodies to undertake urban planning and improvement of public spaces.

Computer labs were established in six higher secondary schools in Shahdol. The objective of these centres is to provide basic knowledge for computer proficiency to the rural youths, who were benefited from this programme.

PROTECTION OF NATIONAL HERITAGE, ARTS
AND CULTURE

Education with a purpose
The Foundation launched a programme for children in the rural areas with the aim to bring about a positive change in attitudes related to education, gender inclusivity and fitness through active participation of parents and the local community. The programme uses sports and activities as a tool for development to bring about positive change. Engagement with children through fun and play sessions, friendly mentoring support from community youth, off-field activities to reinforce learning and handle sensitive topics, engagement in community activities like cleanliness drives etc. are undertaken. More than 2,500 children across 30 villages have been engaged under this programme in Agar District of Madhya Pradesh.

ENVIRONMENT
The Foundation has made significant efforts in promoting ecological sustainability through resource conservation, promotion of biodiversity and use of cleaner energy sources. The Foundation has undertaken construction

Soil Conservation

+1,63,500 tonnes of soil has been conserved by
Reliance Foundation

The Foundation recognises the value of preserving
India’s rich heritage, art and culture for its future generations and has made conscious efforts to ensure its continuity.
The Foundation supported the annual ‘Homage to Abbaji’ concert by Ustad Zakir Hussain in memory of his father,
Ustad Allah Rakha Khan. The concert featured renowned artists who came together to pay tribute to the legendary
Guru. The Foundation has partnered with the Nashik
Municipal Corporation in developing the park on bank of river Godavari. The development of Goda Park includes construction of various civil structures like jogging tracks, walkways, children’s park, senior citizen’s park, horticulture activities, etc.

DISASTER RESPONSE
The Foundation has the capacity to respond to disasters in a timely manner and engage directly with the affected communities. The Foundation was one of the first organisations to deploy relief services including a team of doctors and development professionals in over 100 villages of Uttarakhand which were affected by floods in June 2013. Post the relief work, the Foundation has planned long term measures to support the community, and involves extension of rural transformation and health interventions along with reconstruction of two government schools.

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of children in the traffic environment and sensitize the parents through high school students. Basic instructions such as importance of using a seat belt, places children can use in order to ride their cycle, how one should cross the road etc. were meted out to students in an effort to ensure their safety.

Hudhud Cyclone Relief Material Distribution
The recent floods in Jammu and Kashmir during September
2014 was another occasion where the Foundation acted promptly following a natural calamity. The Foundation reached Srinagar with doctors and volunteers setting up medical relief operations. Medical help was provided along with safe drinking water, food, utensils, beddings and other household items. Relief material including blankets and food was provided to the landslide affected regions of Reasi District, Jammu.
Medical care was provided through 72 camps held across Srinagar where 35,281 patient consultations were undertaken. 217 mid-term shelters were constructed for the affected to provide protection from the winter that had begun to set in. Relief material was provided to 13,561 families. During the cyclones Hudhud and Nilofer, the technology platforms of the Foundation were used to deliver early cyclone warnings and alerts in the form of SMS and audio advisories. Safety Matters
Training and demonstration activity on fire and safety was organised for 250 students of Sanjeevani Primary
School, Damka village. Basic knowledge about fire and its types, mitigation methods were explained to the students with proper demonstration.
Road Safety Awareness Programmes
RIL conducts rigorous safety programmes to ensure and instil road safety among bus drivers and cleaners. The road safety briefing session was conducted for drivers and cleaners and included various aspects of road safety. Drivers Safety Training Centre
In an endeavour to prevent road accidents, truck / tanker drivers are trained for ‘Defensive Driving Techniques’ and
‘Material Transportation’ at Drivers Safety Training Centre
(DSTC), Hazira. This centre is fully equipped with audiovideo equipment to impart training to truck drivers on safety rules, efficient driving techniques, understanding hazards associated with various materials and emergency responses. 21,092 drivers were trained through this initiative during FY 2014-15 (Over 2,60,000 since its inception). OTHER INITIATIVES
Safety Initiatives for Community
Alert today – Alive Tomorrow
This initiative was started to improve road safety awareness among students with a view to reduce their risks of road accidents and develop capacity and awareness of students as well as parents regarding road safety. An initiative to promote the health and well-being

Driver Safety Training Centre

+2,60,000 drivers were trained

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Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

BUSINESS RESPONSIBILITY REPORT
INTRODUCTION
The importance of a business’ role in creating economic value is a well-accepted paradigm. However, the extended role of the business to manage its environmental and social impacts is gaining momentum.
Among Indian corporates, RIL is one of the forerunner of inclusive growth with its deep rooted philosophy of growth as a universal concept that touches all aspects

of life. The Company’s vision is to create value for the nation, enhance quality of life across the entire socioeconomic spectrum, and help spearhead India as a global leader in the domains where it operates. This manifests in the Company’s core values; Customer
Value, Ownership Mindset, Respect, Integrity, One Team and Excellence.

Principle 1

Principle 2

Principle 3

Businesses should conduct and govern themselves with Ethics, Transparency and Accountability

Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

Businesses should promote the wellbeing of all employees

Principle 4

Principle 5

Principle 6

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised

Businesses should respect and promote human rights

Businesses should respect, protect, and make efforts to restore the environment

Principle 7

Principle 8

Principle 9

Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner

Businesses should support inclusive growth and equitable development

Businesses should engage with and provide value to their customers and consumers in a responsible manner

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Hoshiarpur, Jamnagar, Nagothane, Nagpur,
Naroda, Patalganga, Silvassa and Vadodara.
The Exploration and Production (E&P) units are at KG-D6 – Gadimoga and Panna-MuktaTapti. Besides, there are CBM Blocks and various regional marketing offices.

SECTION A: GENERAL INFORMATION ABOUT
THE COMPANY
1.

Corporate Identity Number (CIN) of the Company:
L17110MH1973PLC019786

2.

Name of the Company: Reliance Industries Limited

3.

Registered address: 3rd Floor, Maker Chambers IV,
222, Nariman Point, Mumbai 400 021, India

4.

Website: www.ril.com

5.

E-mail id: sustainability.report@ril.com

6.

Financial Year reported: 2014-15

7.

Sector(s) that the Company is engaged in
(industrial activity code-wise):
Refining, Petrochemicals (Polymers, Polyester and
Fibre Intermediates), Exploration and Production of
Oil & Gas and Textiles.
Industrial
Group
061

Description
Extraction of crude petroleum
Manufacture of refined petroleum products Manufacture of basic chemicals, fertilisers and nitrogen compounds, plastic and synthetic rubber in primary forms
Manufacture of man-made fibres
Extraction of natural gas
Spinning, weaving and finishing of textile Manufacture of other textiles

192
201

203
062
131
139

10. Markets served by the Company – Local/State/
National/International: In addition to serving Indian markets, RIL exported to 121 countries worldwide as on 31st March, 2015.

SECTION B: FINANCIAL DETAILS OF THE
COMPANY
1.

Paid up capital (INR): 3,236 crore

2.

Total turnover (INR): 3,40,814 crore

3.

Total profit after taxes (INR): 22,719 crore

4.

Total spending on Corporate Social Responsibility
(CSR) as percentage of profit after tax (%): 3.35%

5. List of activities in which the Corporate Social
Responsibility (CSR) expenditures have been incurred: The major areas in which the above expenditure has been incurred includes rural transformation, healthcare, education, environment, protection of national heritage, art and culture and disaster response.

SECTION C: OTHER DETAILS
1.

Subsidiary Company/Companies
The number of RIL’s subsidiary companies as on
31st March, 2015 was 96 as per details given in
Annexure A to Consolidated Financial Statements.

2.

Participation of Subsidiary Company/Companies in the Business Responsibility (BR) initiatives of the parent company
RIL encourages its subsidiary companies to participate in its group-wide BR initiatives on several topics. RIL’s
CSR mission is to continue growing as a responsible organisation that believes in enriching lives of those around it, and it propagates this mission through its business partners. All subsidiaries are aligned to the activities under the aegis of Reliance Foundation. RIL’s subsidiaries like Reliance Retail Limited and Reliance
Trading Limited, have taken part in initiatives across several areas during FY 2014-15. These include farm engagement activities, training and skill development of youth, community development activities and promotion of education etc.

As per National Industrial Classification – Ministry of Statistics and Programme Implementation

8.

List three key products/services that the Company manufactures/provides (as in balance sheet):
i)

Transportation Fuels

ii)

Polymers

iii) Polyester Fibre
9.

Total number of locations where business activity is undertaken by the Company:
i.

Number of International Locations (Provide details of major 5): RIL has business activity undertaken in 8 international locations (on standalone basis). The major ones are Turkey,
Malaysia, China, UK, and Netherlands.

ii.

Number of National Locations: RIL has business activity carried out in over 50 domestic locations. The manufacturing divisions are at Allahabad, Barabanki, Dahej, Hazira,

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Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

BUSINESS RESPONSIBILITY REPORT (CONTINUED)
3.

Participation and percentage of participation of other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, in the
BR initiatives of the Company
RIL collaborates with all relevant stakeholders as part of the BR initiatives of the Company. This includes suppliers, distributors, local communities, government and other entities in the value chain.
Considering the spread of RIL’s value chain, at present the number of entities which directly participate in the BR initiatives would be less than 30%.

b) Details of the BR Head
Sl.
Particulars
No.
1
2
3
4
5

Details

DIN Number
00001879
(if applicable)
Name
Shri Yogendra P. Trivedi
Designation
Independent Director
Telephone Number 022 - 2363 3600 trivedi_yogendra@yahoo.co.in e-mail id

2.

SECTION D: BR INFORMATION
1.

Details of Director/Directors responsible for BR
a)

Details of the Director/Directors responsible for implementation of the BR policy/policies
The Corporate Social Responsibility and
Governance (CSR&G) Committee of the Board of
Directors is responsible for implementation of BR policies. The following are the members of the
CSR&G Committee:
DIN Number: 00001879
Name: Shri Yogendra P. Trivedi (Chairman)
Designation: Independent Director

Principle-wise (as per NVGs) BR policy/policies
(Reply in Y/N)
P1– Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
P2– Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
P3– Businesses should promote the well-being of all employees P4– Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised DIN Number: 00001620
Name: Shri Nikhil R. Meswani
Designation: Executive Director

P5– Businesses should respect and promote human rights

DIN Number: 00001982
Name: Dr. Dharam Vir Kapur
Designation: Independent Director

P7– Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner

DIN Number: 00074119
Name: Dr. Raghunath A. Mashelkar
Designation: Independent Director

Reliance Corporate Park

P6– Businesses should respect, protect, and make efforts to restore the environment

P8– Businesses should support inclusive growth and equitable development
P9– Businesses should engage with and provide value to their customers and consumers in a responsible manner 02-45

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Business Responsibility Report

Sl.
Questions
No.

P1

P2

P3

P4

P5

P6

P7

P8

P9

1

Do you have policy/policies for....

Y

Y

Y

Y

Y

Y

Y

Y

Y

2

Has the policy being formulated in consultation with relevant stakeholders?

Y

Y

Y

Y

Y

Y

Y

Y

Y

3

Does the policy conform to any national/ international standards? If yes, specify?
(The policies are based on NVG-guidelines in addition to conformance to the spirit of international standards like ISO 9000, ISO
14000, OHSAS 18000, UNGC guidelines and
ILO principles)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Has the policy being approved by the
Board?
If yes, has it been signed by MD/owner/
CEO/appropriate Board Director?

Y

Y

Y

Y

Y

Y

Y

Y

Y

Does the Company have a specified committee of the Board/ Director/Official to oversee the implementation of the policy?

Y

Y

Y

Y

Y

Y

Y

Y

Y

4

5

6

Indicate the link for the policy to be viewed Please refer below for linkages of these policies with BR principles and page online? no. 111 for weblinks.

7

Has the policy been formally communicated The policies have been communicated to RIL’s key internal stakeholders. The to all relevant internal and external BR policies are communicated through this report. RIL will also explore other stakeholders? formal channels to communicate with other relevant stakeholders.

8

Does the Company have in-house structure Yes, the Corporate Social Responsibility and Governance (CSR&G) Committee to implement the policy/policies? of the Board of Directors is responsible for implementation of policies.

9

Does the Company have a grievance redressal mechanism related to the policy/ policies to address stakeholders’ grievances related to policy/policies?

Yes, any grievances or feedback related to the policies can be sent to sustainability.report@ril.com. CSR&G Committee of the Board of Directors undertakes the responsibility of addressing stakeholder concerns related to
BR policies.

10 Has the Company carried out independent The BR policy has been evaluated internally. Policies pertaining to health, audit/evaluation of the working of this safety and environment have also been audited by external agencies, viz. policy by an internal or external agency?
DNV, LRQA and BVQi.

Linkages of various Company policies with BR Principles as per NVG
Principle
No.

NVG Principle

Reference Document

Reference Section

1

Businesses should conduct and govern themselves with Ethics, Transparency and
Accountability

2

Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

Code of Conduct
Values and Behaviours
Our Code
Code of Conduct
Values and Behaviours
Corporate Social Responsibility
Policy

Section 2, 3, 5 & 7
Customer Value
Section 3
Section 6
Customer Value

Health, Safety & Environment Policy
3

Businesses should promote the wellbeing of all employees

4

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised Code of Conduct
Values and Behaviours
Code of Conduct
Our Code
Corporate Social Responsibility
Policy

Section 3
Please refer page no. 111 for weblink Section 3, 4, 6 & 8
Excellence Value
Section 5 & 6
Section 5
Section 3

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Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

BUSINESS RESPONSIBILITY REPORT (CONTINUED)
Principle
No.

NVG Principle

Reference Document

Reference Section

5

Businesses should respect and promote human rights

Section 6 & 8
Section 5

6

Businesses should respect, protect and make efforts to restore the environment

Code of Conduct
Our Code
Corporate Social Responsibility
Policy
Environment Policy

7

8

9

Businesses, when engaged in influencing Code of Conduct public and regulatory policy, should do so in a responsible manner
Businesses should support inclusive
Our Code growth and equitable development
Health, Safety & Environment Policy

Businesses should engage with and provide value to their customers and consumers in a responsible manner

Corporate Social Responsibility
Policy
Values and Behaviours
Our Code
Code of Conduct
Corporate Social Responsibility
Policy

Section 3
Please refer page no. 111 for weblink Section 5 & 6

Section 5
Please refer page no. 111 for weblink Section 3
Customer Value
Section 2 & 5
Section 5
Section 3

Detailed description of NVG
Principle
No.
1

NVG Principle

Reference Section

Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
Businesses should develop governance structures, procedures and practices that ensure ethical conduct at all levels; and promote the adoption of this principle across its value chain.
Businesses should communicate transparently and ensure access to information about their decisions that impact relevant stakeholder.
Businesses should not engage in practices that are abusive, corrupt or anti-competition.
Businesses should truthfully discharge their responsibility on financial and other mandatory disclosures.

2

Reference Document
Code of Conduct
Our Code

Section 2
Section 3

Values and Behaviours

Customer Value

Code of Conduct

Section 5

Code of Conduct

Section 7

Businesses should provide goods and services that are safe and contribute to sustainability throughout their life-cycle
Businesses should assure safety and optimal resource use over the lifecycle of the product – from design to disposal
– and ensure that everyone connected with it– designers, producers, value chain members, customers and recyclers are aware of their responsibilities.
Businesses should raise the consumer's awareness of their rights through education, product labelling, appropriate and helpful marketing communication, full details of contents and composition and promotion of safe usage and disposal of their products and services.
In designing the product, businesses should ensure that the manufacturing processes and technologies required to produce it are resource efficient and sustainable.
Businesses should regularly review and improve upon the process of new technology development, deployment and commercialisation, incorporating social, ethical, and environmental considerations.
Businesses should recognise and respect the rights of people who may be owners of traditional knowledge, and other forms of intellectual property.

Health, Safety &
Environment Policy

Please refer page no. 111 for weblink

Values and Behaviours

Customer Value

Corporate Social
Responsibility Policy

Section 3

Corporate Social
Responsibility Policy

Section 3

Code of Conduct

Section 6

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Principle
No.

Reference Document

Reference Section

Businesses should recognise that over-consumption results in unsustainable exploitation of our planet's resources, and should therefore promote sustainable consumption, including recycling of resources.

3

NVG Principle

Health, Safety &
Environment Policy

Please refer page no. 111 for weblink Businesses should promote the well-being of all employees
Businesses should respect the right to freedom of association, participation, collective bargaining and provide access to appropriate grievance redressal mechanism.
Businesses should provide and maintain equal opportunities at the time of recruitment as well as during the course of employment irrespective of caste, creed, gender, race, religion, disability or sexual orientation.
Businesses should not use child labour, forced labour or any form of involuntary labour, paid or unpaid.
Businesses should provide facilities for the well-being of all employees. Businesses should provide a workplace environment that is safe, hygienic, humane, and which upholds the dignity of the employees. Businesses should communicate this provision to their employees and train them on a regular basis.
Businesses should ensure continuous skill and competence upgrading of all employees by providing access to necessary learning opportunities, on an equal and non-discriminatory basis. They should promote employee morale and career development through enlightened human resource interventions. Businesses should create systems and practices to ensure a harassment free workplace, where employees feel safe and secure in discharging their responsibilities.

4

Section 8

Code of Conduct

Section 4

Code of Conduct

Section 6

Code of Conduct

Section 3

Code of Conduct

Section 3

Values and Behaviours

Excellence Value

Code of Conduct

Section 4

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised
Businesses should systematically identify their stakeholders, understand their concerns, define purpose and scope of engagement, and commit to engaging with them.
Businesses should acknowledge, assume responsibility and be transparent about the impact of their policies, decisions, product and services and associated operations on the stakeholders. Businesses should give special attention to stakeholders in underdeveloped areas.
Businesses should resolve differences with stakeholders in a just, fair and equitable manner.

5

Code of Conduct

Code of Conduct

Section 5 & 6

Code of Conduct

Section 5 & 6

Corporate Social
Responsibility Policy
Our Code
Our Code

Section 3
Section 5
Section 5

Code of Conduct

Section 6

Code of Conduct

Section 6 & 8

Our Code

Section 5

Code of Conduct

Section 6

Code of Conduct

Section 6

Businesses should respect and promote human rights
Businesses should understand the human rights content of the Constitution of India, national laws and policies and the content of International Bill of Human Rights.
Businesses should appreciate that human rights are inherent, universal, indivisible and interdependent in nature.
Businesses should integrate respect for human rights in management systems, in particular through assessing and managing human rights impacts of operations, and ensuring all individuals impacted by the business have access to grievance mechanisms.
Businesses should recognise and respect the human rights of all relevant stakeholders and groups within and beyond the workplace, including that of communities, consumers and vulnerable and marginalised groups.
Businesses should, within their sphere of influence, promote the awareness and realisation of human rights across their value chain.

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Principle
No.

Reference Document

Reference Section

Businesses should not be complicit with human rights abuses by a third party.

6

NVG Principle

Code of Conduct

Section 6

Businesses should respect, protect and make efforts to restore the environment
Businesses should utilise natural and man made resources in an optimal and responsible manner and ensure the sustainability of resources by reducing, reusing, recycling and managing waste. Businesses should take measures to check and prevent pollution. They should assess the environmental damage and bear the cost of pollution abatement with due regard to public interest. Businesses should ensure that benefits arising out of access and commercialisation of biological and other natural resources and associated traditional knowledge are shared equitably. Businesses should continuously seek to improve the environmental performance by adopting cleaner production methods and promoting use of renewable energy.
Businesses should develop Environment Management
Systems (EMS) and contingency plans and processes that help them in preventing, mitigating and controlling environmental damages and disasters, which may be caused due to their operations or that of a member of its value chain.
Businesses should report their environmental performance, including the assessment of potential environmental risks associated with their operations, to the stakeholders in a fair and transparent manner.
Businesses should proactively persuade and support its value chain to adopt this principle.

7

Corporate Social
Responsibility Policy

Section 3

Corporate Social
Responsibility Policy

Section 3

Corporate Social
Responsibility Policy

Section 3

Corporate Social
Responsibility Policy

Section 3

Environment Policy

Please refer page no. 111 for weblink Environment Policy

Please refer page no. 111 for weblink Code of Conduct

Section 6

Code of Conduct

Section 5

Businesses should support inclusive growth and equitable development
Businesses should understand their impact on social and economic development, and respond through appropriate action to minimise the negative impacts.
Businesses should innovate and invest in products, technologies and processes that promote the well-being of society.
Businesses should make efforts to complement and support the development priorities at local and national levels, and assure appropriate resettlement and rehabilitation of communities who have been displaced owing to their business operations.
Businesses operating in regions that are underdeveloped should be especially sensitive to local concerns.

9

Please refer page no. 111 for weblink Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
Businesses, while pursuing policy advocacy, must ensure that their advocacy positions are consistent with the principles and core elements contained in these guidelines.
To the extent possible, businesses should utilise the trade and industry chambers and associations and other such collective platforms to undertake such policy advocacy.

8

Environment Policy

Health, Safety &
Environment Policy
Corporate Social
Responsibility Policy
Corporate Social
Responsibility Policy

Our Code

Please refer page no. 111 for weblink Section 3
Section 3

Section 5

Businesses should engage with and provide value to their customers and consumers in a responsible manner
Businesses, while serving the needs of their customers, should take into account the overall well-being of the customers and that of the society.
Businesses should ensure that they do not restrict the freedom of choice and free competition in any manner while designing, promoting and selling their products.

Values and Behaviours
Our Code

Customer Value
Section 2

Code of Conduct

Section 5

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No.

NVG Principle

Reference Document

Reference Section

Businesses should disclose all information truthfully and factually, through labelling and other means, including the risks to the individual, to society and to the planet from the use of the products, so that the customers can exercise their freedom to consume in a responsible manner. Where required, businesses should also educate their customers on the safe and responsible usage of their products and services.
Businesses should promote and advertise their products in ways that do not mislead or confuse the consumers or violate any of the principles in these guidelines.
Businesses should exercise due care and caution while providing goods and services that result in over exploitation of natural resources or lead to excessive conspicuous consumption. Businesses should provide adequate grievance handling mechanisms to address customer concerns and feedback.

Values and Behaviours

Customer Value

Values and Behaviours

Customer Value

Corporate Social
Responsibility Policy

Section 3

Our Code

Section 5

Links
1. Environment Policy http://www.ril.com/Sustainability/HealthSafety.aspx 2.

Health, Safety and Environment Policy http://www.ril.com/Sustainability/HealthSafety.aspx 3.

Corporate Social Responsibility Policy http://www.ril.com/getattachment/d5fd70efe019-47e5-bb83-de2077874505/Corporate-SocialResponsibility-Policy.aspx 4.

Our code http://www.ril.com/getattachment/ee7b0fc7-e62e4132-a69d-2f52f82e605b/Our-Code.aspx 5.

Code of conduct http://www.ril.com/getattachment/3724d19a-8a2b4a6e-898a-a5c7f01aaf01/Code-of-Conduct.aspx 1

6.

3.
a)

Values & Behaviours http://www.ril.com/getattachment/04fad041-a37a42f8-85f8-6ed19be58602/Values-and-Behaviours.aspx SECTION E: PRINCIPLE-WISE PERFORMANCE
Principle 1
Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
Conducting business on the pillars of ethics and transparency fosters the trust of stakeholders. RIL believes that image and reputation are vital in adding value to the organisation.
1.

Coverage of policy relating to ethics, bribery and corruption (e.g. Joint Ventures, Suppliers,
Contractors, NGOs etc.).
RIL’s code of conduct covers the policy on bribery and anti-corruption and it includes all individuals working with it, and its subsidiaries at all levels and grades.
This mechanism includes directors, senior executives, officers, employees (whether permanent, fixed-term or temporary), and third parties including consultants, contractors or any other person associated with
RIL. The well-defined policy lists tenets on ethical business conduct, definitions and the framework for reporting concerns.

2.

Stakeholder complaints received in the past financial year and percentage of complaints satisfactorily resolved by the management.
As specified in the Corporate Governance Report,
2,301 investor complaints were received during FY
2014-15. No complaint was outstanding, as on 31st
March, 2015. In addition to this, 2,527 customer

Governance related to BR
Frequency with which the Board of Directors,
Committee of the Board or CEO meet to assess the BR performance of the Company
The CSR&G Committee assesses the BR performance of the Company annually.

b) BR and Sustainability Reports published, frequency and link of published reports
RIL publishes its Sustainability Report annually based on Global Reporting Initiative’s (GRI) latest reporting guidelines. RIL has been publishing the GRI A+ application1 level check reports since 2005-06. The last published Sustainability Report for FY 2013-14 and all previous reports are available at http://www.ril.com/Sustainability/CorporateSustainability.aspx Declaring an Application Level results in a clear communication about which elements of the GRI Reporting
Framework have been applied in the preparation of a report. The reporting levels C, B and A reflects an increasing application or coverage of the GRI Reporting
Framework while the ‘+’ sign signifies that the report is externally assured.

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BUSINESS RESPONSIBILITY REPORT (CONTINUED) complaints were received, out of which 2,435 were successfully resolved as on 31st March, 2015.
Subsequently, most of these complaints have been resolved. Rice Husk PVC Composites can be cut, nailed, screwed, glued and routed like wood. These properties make it useful for various products including furniture, siding, shuttering, flooring, railing, partitions and doors. Rice Husk PVC composites also have potential in industrial applications like industrial lumbers, pallets etc.

RIL’s code of conduct has a provision for all its stakeholders to freely share their concerns and grievances with RIL through a structured mechanism. Rice Husk PVC products are used in Green
Buildings across the world due to their potential to meet the necessary requirements.

Principle 2
Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
Creating sustainable products is a part of RIL’s endeavour towards responsible product stewardship.
RIL aims to make its products safer and more environment friendly.
1.

List three products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.
It is RIL’s constant endeavour to make products that not only have a positive impact on the environment, but also cater to consumer needs. Some of the products created during FY 2014-15 are listed below:
a)

Rice Husk Polyvinyl Chloride (PVC) Composite boards for construction and furniture applications Rice Husk PVC Composites are manufactured using PVC resin, additives and Rice Husk (Husk generated during milling). As these products perform equally well compared to wood, they have potential to save forest coverage of the country by reducing the demand of wood.

RIL organised meeting with many processors to manufacture Rice Husk PVC products. To start with, two processors have ventured into manufacturing of Rice Husk PVC Composite construction boards.
b)

PE Flexible Silo Bags for food grain storage to reduce the wastage of food grain
Hermetic Storage (HS) technology has emerged as a significant alternative to other methods of storage that protect commodities from insects and molds. HS is based on the principle of generation of an oxygen-depleted, carbon dioxide-enriched interstitial atmosphere caused by the respiration of the living organisms in the ecological system of a sealed storage.
Silo Recron Green Products is a Bulk Grain Storage system which is a low cost alternative to fixed structure storage. A Silo Bag is simply a long PE
(polyethylene) bag that comes in different sizes.
A Silo Bag is a laminated mix of three layers of PE.
The first two layers act as a UV filter. The third layer is black and is designed to keep out the sunlight.

The husk generated during milling of rice is mostly used in the boilers for processing paddy, producing energy through direct combustion and/or by gasification. The ash generated as a result is a great environment threat causing damage to the land and the surrounding area in which it is dumped.

Workers using Silo Bags for Grain Storage

Rice Husk PVC composite

The basic principle is to keep the grain in a modified atmosphere, low in oxygen and with a high concentration of carbon dioxide (CO2). Once filled, the bag is sealed. The conditions within the bag thereafter control the breading of vermin, insects and fungi, eliminating the need for fumigation .

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c)

RIL has taken many initiatives towards addressing environmental concerns, and continues to make eco-friendly sustainable fibre under the brand name Recron® Green Gold polyester staple fibre.
The Company’s philosophy is to reduce, re-use, recycle and replace, in all stages of Recron® Green
Gold polyester staple fibres are produced with 100
% post-consumer waste PET bottles. These fibres are one of the greenest fibres in the world and have one of the lowest carbon footprints. These fibres have been tested for lowest carbon footprint by SGS, for both Grey (white) and EcoD (pre-colour fibres) meeting the most stringent environmental criteria for being a green fibre.

Recron Green Polyester Staple Fibre
2.

it’s large scale new capacity addition projects, it has enabled the creation of a large engineering base in
India.

Recron Green Polyester Staple Fibre

Procedures in place for sustainable sourcing
(including transportation) and percentage of inputs sourced sustainably
RIL’s ethos on sustainable sourcing symbolises protection of the environment, social progress and supporting India’s economic development. The
Company has adopted RC-14001 international environmental management system in an endeavour to effectively manage the manufacturing, distribution and use of chemicals in the products.
To improve the protection of human health and the environment, the Company has sourced
REACH (Registration, Evaluation, Authorisation and
Restriction of Chemical’s) compliant materials and its requirements include that its tier 1 suppliers also procure REACH compliant materials. RIL ensures
100% compliance of statutory laws and regulations including labour laws by its contractors.
In order to dispose of the waste effectively, the
Company audits its processors’ operations to ensure that credible disposal practices. RIL prefers vendors who undertake green initiatives and reduce, reuse, recycle as a continuous exercise. The Company takes highest care in safe handling of its materials and also does reconnaissance of entire logistics handling/ storage from supplier factory to its gate. Through

3.

Steps taken to procure goods and services from local and small producers, including communities and capability building activities undertaken for local and small vendors
RIL has invested in mega projects and operations in India. These investments have developed India’s chemicals and engineering supplier base. Today leading Indian engineering companies, raw materials companies and industrial goods companies are RIL’s long-term vendor partners. Through its sustained efforts, the Company has helped local industry develop new products to serve its needs and enabled them to grow their businesses globally. While RIL always believes in working with highest capability vendors, majority of its suppliers and contractors are India based.
RIL’s manufacturing sites act as economic nerve centres for local communities. The Company ensures that it engages local villagers and small businesses around its plants in variety of productive employment especially through vehicle hiring, material handling, housekeeping, waste-handling and horticulture contracts. Some of these vendors have been serving the Company’s manufacturing sites for the past two generations. These contracts have led to entrepreneurship development around the manufacturing sites and have created employment for the populace.

CASE STUDY- JOINT DEVELOPMENT OF APE
FREE SPIN FINISH FOR PSF
RIL has been working hand-in-hand with one of its long time suppliers of speciality chemicals, Croda, for adopting sustainable products/ technologies.
Spin finishes are speciality chemicals (surfactants) used during manufacture of polyester fibres.
Depending on the application, the spin finish may be washed off during production or remain on the fibre to deliver some processing characteristics to the fibre. Alkyl Phenol Ethokylate (APE) based surfactants are used in the industry due to their very high performance. However studies have indicated that APEs are slow to degrade, bio-accumulate, toxic to aquatic organisms and endocrine disruptor in higher animals. In an endeavour to create spin finishes that are sustainable and environment friendly, RIL, along with Croda, worked to develop spin finishes that are APE free and also compliant with Öko-Tex Standard (independent testing and certification system for textile products).

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CASE STUDY- VENDOR AND SUPPLIER
ORIENTATION ON ENVIRONMENT AND
SAFETY ISSUES
Regulatory and legal compliance are of top priority for the Company and violation of any sorts is unacceptable. RIL has conducted awareness programmes for vendors, suppliers, contractors about its philosophy towards health, safety and environment. 4.

Mechanism to recycle products and waste and the percentage of recycling of products and waste
(separately as 10%)
RIL considers waste minimisation as the first step towards responsible management of waste.
Through process technology and operational control measures, it intends to minimise the generation of product or process waste. However, considering the nature of its operations, there is a certain amount of waste generation which is inevitable. Recycling and reusing of waste helps the Company in reducing its environmental impact while at the same time improving the material efficiency of the operations. In this direction, RIL has taken various measures such as converting waste to organic manure and biogas generation, recycling of used oil, slop oil and oily sludge at Jamnagar plant, recycling of waste
PET bottles at Hazira, Nagothane, Hoshiarpur and Barabanki plants and recycling of used/ waste oil, spent catalysts through authorised re-processors. RIL ensures responsible disposal of waste generated by partnering with various agencies to encourage end-of-life recycling and reuse. The industrial waste generated at the Naroda plant is converted into useful
‘bio-manure’ by the vermi-composting method, thereby reducing the load of waste disposal on the environment. sea water instead of using fresh water resources.
The waste water generated is treated and used for green belt development thereby ensuring zero effluent discharge.
Continuous focus on waste minimisation, reuse and recycle help the Company in reducing consumption of virgin material.
RIL has recycled treated waste water across its manufacturing divisions.
RIL is recycling about 60000 tons/year of polyester both industrial and consumer waste, and has plans to expand further in recycling capacity.
Polyester fabric waste recycling: Work is underway to develop a process to recover polyester component of fabrics and enzymatically hydrolyse the products of non- polyester components like cotton and viscose to glucose. As a value addition, this glucose can be consumed for production of various biochemicals while the polyester recovered can be recycled.

CASE STUDY- OPTIMISATION OF EFFLUENT
TREATMENT OPERATIONS AT HAZIRA
MANUFACTURING DIVISION
Primary treatment is done for individual effluent streams at the plant level as per the requirement.
These streams are then segregated into Low Total
Dissolved Solids (LTDS) streams and High Total
Dissolved Solids (HTDS) streams and led to separate
LTDS Effluent Treatment Plant (ETP) and HTDS ETP respectively. The effluent at both the LTDS and HTDS
ETPs are sequentially treated in primary, secondary and tertiary treatment facilities. Treated effluents from HTDS ETP are discharged outside after ensuring that quality of the effluent meets or is better than the prescribed discharge standards. The treated effluent from LTDS ETP are further processed through reverse osmosis plant and recycled as make-up water to cooling towers. About 8000 m3/day of treated effluent (25% of total volume) is thus reused as makeup water to cooling tower, reducing requirement of freshwater for the complex.

Principle 3
Businesses should promote the well-being of all employees Jamnagar Refinery
The Jamnagar refinery has reduced its load on the environment by tapping and desalinating

RIL believes in its people power propelling its progressive growth. Their knowledge, experience and passion to perform are fundamental to building the organisation further. Hence at RIL, it provides employees with opportunities that encourage them to excel. RIL ensures a work environment that promotes well-being.

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1.

Total number of employees
The total number of employees is 24,930 as on
31st March, 2015.

2.

Number of permanent women employees
The total number of permanent women employees is
1,195 as on 31st March, 2015.

3.

Number of permanent employees with disabilities
The total number of permanent employees with disabilities is 83 as on 31st March, 2015.

4.

Employee associations recognised by the management RIL has various unions and associations of employees at various sites which encourage the employees to participate freely in constructive dialogue with the management. Workforce breakdown

7.

Percentage of under mentioned employees that were given safety & skill up-gradation training in the last year
Permanent Employees
Permanent Women Employees
Casual/Temporary/Contractual Employees
Employees with Disabilities

It is RIL’s constant endeavour to keep its employees abreast with the latest technical knowledge. During FY 2014-15, a total of 1.76 million man-hours of training was imparted by RIL to its people. 65.6% of RIL’s permanent employees received safety and skill up-gradation trainings while
61% of the women employees received trainings through classroom as well as web-based training programmes.
Out of 83 permanent employees with disabilities, 51.8% received safety and skill up-gradation trainings. All of RIL’s contractual employees receive mandatory safety training before entering the premises and receive on the job training through the contractor and the Company.

(%)

Principle 4
Non Supervisors

28
27

Leaders

2014-15
5
3
2
35

Executive

Apprentices
Trainees
Managers

4% increase in women employees
5.

Percentage of permanent employees that are members of recognised employee association
Almost 100% of non-supervisory permanent employees at manufacturing locations are members of trade unions/employee associations.

6.

Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year
No cases of child labour, forced labour, involuntary labour, sexual harassment and discriminatory employment were reported in the last financial year.
Taking a step further, RIL has formed an Internal
Complaints Committee where employees can register their complaints against sexual harassment.
This is supported by the Sexual Harassment Policy which ensures a free and fair enquiry process with clear timelines.

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised
Stakeholders play an important role in determining
RIL’s growth story. Stakeholder engagement, at RIL, aims to provide transparency in communications and continual improvement. It’s a dialogue that defines the RIL approach of understanding stakeholder needs, and develop action plans to fulfil them.
1. Mapping of internal and external stakeholders
The stakeholders have been mapped and the key categories are as below:
i) Government and regulatory authorities ii) Employees iii) Customers iv) Local community
v) Investors and shareholders vi) Suppliers vii) Trade unions viii) NGOs

Old Age Home at Yanam

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RIL engages with its identified stakeholders on an ongoing basis through a constructive consultation process. There is a structured stakeholder engagement programme which entails specific engagement mechanisms for each stakeholder group.
The Company follows a system of timely feedback and response through formal and informal channels of communication to ensure that the stakeholder information remains current and updated.
2.

Identification of the disadvantaged, vulnerable and marginalised stakeholders
Through RIL’s stakeholder engagement, the disadvantaged and marginalised stakeholders are identified. 3.

Special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalised stakeholders
RIL goes beyond its business activities to create societal impact through its diverse initiatives, and is working towards improving lives of India’s most marginalised and vulnerable communities. At RIL, there are certain criteria for selecting a project. In order to determine the beneficiaries, the Company undertakes a need assessment that focuses on the scale, impact and sustainability of the project. These include rural rejuvenation projects that help empower farmers, schools for children living in remote areas, affordable healthcare for the average Indian, urban planning to build essential infrastructures etc.
A large number of RIL’s livelihood support programmes are women-centric and have helped them become independent and gain a steady source of income through a range of different vocations. The
Company is continuously improving the access to quality education through adopting schools in and around its manufacturing units. These educational institutions include children from the underprivileged communities whose fee are completely or partially waived. Meritorious students are assisted with scholarships to pursue higher education in colleges.
Students who are physically challenged are specially assisted to pursue high education in colleges. RIL is moving ahead in every possible direction to help
India move into the brave new world.
For specific details, please refer to Report on
Corporate Social Responsibility.

Principle 5
Businesses should respect and promote human rights
RIL’s culture demonstrates integrity and respect for human rights. RIL developed policies and mechanisms to ensure human rights are an entitlement to all. It is guaranteed in day-to-day operations and in the way RIL conducts its

business. RIL publicly reports its progress against the ten principles by UNGC, one of them being human rights.
1. Coverage of the Company’s policy on human rights to the Company and its extension to Group/Joint
Ventures/Suppliers/Contractors/ NGOs/Others
RIL’s code of conduct demonstrates its commitment towards the preservation of human rights across the value chain. The Company believes that a sustainable organisation rests on a foundation of ethics and respect for human rights. RIL promotes awareness of the importance of respecting human rights within its value chain and discourage instances of abuse.
2.

Stakeholder complaints received in the past financial year and percentage of complaints satisfactorily resolved by the management
There were no reported complaints during FY 2014-15.

Principle 6
Businesses should respect, protect and make efforts to restore the environment
RIL believes in safeguarding the environment, while executing its operations. To this effect, it takes every effort towards environmental conservation. RIL ensures to do business with a minimal environmental impact that aims at rational use of natural resources and reduced waste and emissions.
1. Coverage of the policy related to Principle 6 and its extension to the Group/Joint Ventures/Suppliers/
Contractors/NGOs/others
Environmental conservation is core to RIL’s business strategy. RIL, in its ‘Environment Policy’, has stated that protection of the environment is of prime concern. RIL is conscious of its responsibility towards creating, maintaining and ensuring a safe and clean environment for sustainable development. The policy addresses issues related to Group companies, JV partners, suppliers, contractors and customers.
RIL encourages sharing of process and product innovations within the group and extending it to benefit the industry and key members of its value chain. 2.

Company’s strategies/ initiatives to address global environmental issues such as climate change, global warming, etc.
One of the key strategic pillars of RIL’s sustainability strategy is ensuring energy security. In its endeavour to become a key global energy player, the Company has strengthened its focus in recent years on opportunities to harness alternative energy sources.
RIL is continuously working to improve energy efficiency in its manufacturing operations, thereby

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reducing emission of greenhouse gases (GHG). A dedicated Clean Development Mechanism (CDM) cell identifies the opportunities, and works on climate change mitigation projects. RIL adheres to all legal requirements and norms of energy conservation and other environmental conservation standards stipulated by the Government of India and other countries where RIL has a presence. All of RIL’s manufacturing sites regularly account for
GHG emissions, resulting from their manufacturing operations. Energy conservation initiatives are a part of regular operations, which help reduce the
Company’s GHG emission as well. Data on GHG emission is annually published in its Sustainability
Report.

The measures highlighted in the environmental assessments are addressed in a timely manner and monitored accordingly. Mitigation measures and environmental parameters are internalised at all stages of project design, execution, construction, operation and maintenance.
4.

CASE STUDY- SHORE POWER SUPPLY
TO TUGS AT HAZIRA:
Reduction in fuel oil consumption of support tugs by providing shore electrical power supply at Jetty.

Company’s initiatives towards Clean Development
Mechanism
The Company continues to work towards development and implementation of climate change mitigation projects, mainly through energy efficiency and use of cleaner fuels. RIL has eight CDM projects registered with the United Nations Framework Convention
Climate Change (UNFCCC). The Company has built inhouse capacity to develop CDM projects and obtain the registration and issuance of the same in the form of Certified Emission Reductions (CERs) from the
UNFCCC.

Benefits:
Reduction of HSD fuel consumption by 138 KL in
FY 2013-14
Reduction in maintenance cost

Protection of the environment:
Reduction in CO2 emission by 360 tonnes per year
Reduction of noise level on board vessel
Reduction of waste in lube oil generation
3.

Identification and assessment of potential environmental risks
RIL has identified and assessed potential environmental risks for FY 2014-15. RIL has systems in place that ensure continuous monitoring of potential environmental risks involved in its operations. For new and upcoming projects, potential environmental risks are identified while preparing Environment
Impact Assessment (EIA) and Risk Assessment reports.
Accordingly, identified potential environmental risks are addressed at the design stage and also mitigated through incorporation of robust environmental management plan. Environmental audits are carried out regularly which help in identifying potential risks and necessary corrective actions are taken to mitigate the same.
All the manufacturing divisions are certified as per the ISO-14001 environment management system and integrated with quality and safety management systems (ISO 9001 and OHSAS 18001). In addition, all these sites have also been covered under the
British Safety Council UK’s environment five star audit. The periodic audits conducted as part of these management systems help RIL identify potential risks at its locations.

Migratory birds at Gadimoga
5.

Company’s initiatives on – clean technology, energy efficiency, renewable energy, etc.
Clean Technology
Process for CO2 capture from refinery flue gas:
Work is underway to further reduce emissions through CO2 capture, storage, and further utilisation for conversion to useful chemicals.
The patented RIL process for development of in-house adsorbent and energy efficient CO2 capture process follows carbonate-bicarbonate chemistry for adsorption and regeneration step with minimum operating expense as compared to conventional amine absorption process. The results of recently concluded pilot plant study provide definite indications towards the efficacy and scalability of this adsorption process for capturing CO2 from both oil refinery and power plant. These works support RIL’s commitment to ameliorating long-term environmental issues.
Work is underway for the development of catalyst and processes for gasification of petroleum coke/ biomass at low temperature.
Design and installation of organic stripper systems at Silvassa, which reduced emissions

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BUSINESS RESPONSIBILITY REPORT (CONTINUED) of organic vapours to environment and also partially substituted fuel oil or natural gas as fuel, thus reducing fossil fuel use.
Development of sulphur and particulate matter removal systems at Barabanki Unit.
Direct synthesis of Dimethyl carbonate from carbon dioxide recycles CO2 into fuels that lowers
GHG emissions.
Development of advanced non phthalate polypropylene catalyst, donor & polypropylene products. Phthalates have been identified as potential endocrine disruptors and it is desirable to eliminate their use.
Design & installation of organic stripper systems at Silvassa which reduced emissions of organic vapours to the environment and also partially substituted fuel oil or natural gas as fuel, thus reducing fossil fuel use.
Development of a new product, RelFarmS™, which converts by-product sulfur into a high quality fertilizer. RelfarmS™ is currently in field test. Energy Efficiency
Use of Vapour Absorption Chiller at Silvassa,
Patalganga and Hoshiarpur, using waste steam/ hot water in place of electricity to generate refrigeration for process. This also substitutes a
HCFC based refrigerant (Global Warming Potential
1300) chiller with a water refrigerant chiller.
Additives to improve efficiency in Hydrocarbon
Process: Research work is underway to improve the conversion of hydrocarbons to petrochemical building blocks and thereby not only reducing the by-product formation but improving process efficiency. Replacement of lighting systems by LED based systems. Optimisation of compressed air system at
Silvassa, thereby cutting down on power import from grid (600 kW reduction).
Renewable Energy
RIL’s ‘Algae to Biocrude’ effort aims at establishing a green platform to achieve sustainable and economically viable production of biocrude by large scale cultivation of
‘producer’ algal strains with optimal inputs of sea water, low cost nutrients (N, P) and crop protection measures. Use of Algae to produce biocrude represents the adaptation of ‘Green Chemistry / Green Technology’ with benefits such as (a) less environmental impact on land currently used for production of food crops (b) use of land that is otherwise non-productive (c) potential to reduce the

generation of GHG and to recycle CO2 emissions from flue gases from power plants and natural gas operations.
Biofuel Productivity improvement and Large scale production: Research and development efforts in the areas of improvement of productivity of biofuels per unit area and production of clean energy and chemicals using renewable raw materials are closer to commercialisation. These efforts have a potential to produce significantly large quantities of clean fuels and chemicals.
Jatropha based biodiesel: Marginal low-rainfall land is ideally suited for our globally competitive high yielding Jatropha hybrids.

Jamnagar Refinery

6.

7.

Agri-residue to hydrocarbons: Agri-residue is often burnt to quickly clear fields. Our technology provides a better alternative by enabling efficient conversion of this waste agriresidue into products such as kerosene.
Reporting on the Emissions/Waste generated by the Company as per the permissible limits given by
CPCB/SPCB
The emissions / waste generated by the Company is within the permissible limits given by the State or
Central pollution control boards. In RIL’s environmental management system, environmental compliance is an indispensable aspect. RIL’s emissions/waste generated reports are regularly submitted to CPCB/
SPCB by the Company and no non-conformances have been reported. Efficient control equipment and robust procedures help us meet the applicable environmental standards continuously.
Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on the end of financial year
There are no pending or unresolved show cause/ legal notices from CPCB/SPCB in FY 2014-15.

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Following are some of the initiatives RIL undertook during FY 2014-15:
1. Ensuring well-being of local communities
2. Building capabilities for employment generation
3. Empowering women
4. Creating access to healthcare
5. Conserving environment
6. Promoting education

Principle 7
Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
RIL’s collaboration with industrial bodies and academia demonstrates its approach towards addressing sustainability challenges. RIL aims to create an environment that encourages supportive decisions made in a responsible way. The associations formed are in consultation with the Board and contains representation from the Board in certain memberships.
1. Representation in any trade and chamber or association
RIL has its representation in several business and industrial associations such as The World Economic Forum, The
American Chemistry Council (ACC), Indian Chemical
Council (ICC), The Chemicals and Petroleum Manufacturers
Association (CPMA), Gulf Petrochemicals & Chemicals
Association (GPCA), World Business Council for Sustainable
Development (WBCSD) European Petrochemicals
Association (EPCA), American Fuel & Petrochemical
Manufacturers (AFPM) Association of Oil and Gas
Operators in India (AOGO), Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of
Indian Industry (CII), Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Association Of
Synthetic Fibre Industry (ASFI).
2.

2.

RIL seeks to strategically consolidate the Company’s
CSR initiatives to focus on discrete social problems, all aimed at enabling lives, living and livelihoods. In order to streamline its social initiatives, the Company has identified six focus areas that aim to positively and holistically impact society. The six focus areas identified by RIL are as follows:
Rural transformation
Healthcare
Education
Environment
Protection of national heritage, arts and culture
Disaster Response

Advocating/lobbying through above associations for the advancement or improvement of public good
RIL as a responsible producer of petrochemicals is collaborating with ICPE (Indian Centre for Plastic in the Environment) on a voluntary basis and provides technical and financial support to help develop newer technologies for plastics waste management, establishment of pilot projects for plastics waste management in cooperation with municipal authorities and civil society.

For specific details please refer to the Report on
Corporate Social Responsibility.
3.

Principle 8
Businesses should support inclusive growth and equitable development
RIL believes in creating opportunities for the people around its operations to enable a sustainable future and ensure inclusive growth. Its community development activities focus on areas that foster development and well-being of communities. RIL’s
CSR initiatives are aligned to aspects, such as rural transformation, healthcare, education, environment, protection of national heritage, art and culture, and disaster response.
1. Specified programmes/initiatives/projects by the
Company in pursuit of the policy related to Principle 8
RIL’s CSR policy demonstrates its efforts towards social and economic development. RIL’s community development initiative focuses on rural transformation, healthcare, education, environment, protection of national heritage, art and culture, and disaster response.

Modes through which programmes/projects undertaken (through in-house team/own foundation/external NGO/government structures/ any other organisation)
Corporate Social Responsibility Philosophy: RIL’s business priorities co-exist with social commitments and its activities support inclusive growth.

Impact assessments for initiatives
Impact assessments for the CSR initiatives across
RIL, help gauge the impact made on the lives of beneficiaries and also facilitates the decision making process. Before embarking on a project, a primary or secondary baseline study is undertaken to establish the situation prior to the intervention. Measurement of the impact and achievements of programmes are done through sample surveys and studies. These are carried out at different points of time in the intervention life cycle to systematically measure and capture the change. These studies are mostly external in nature to ensure the objectivity and credibility of the findings.
Studies have been conducted to assess the impact of health initiatives across RIL manufacturing locations and rural transformation initiatives which focus on agriculture. 119

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After initiation of the CSR activities, RIL has constituted mechanisms to collect relevant information about the beneficiaries so that the progress and changes could be measured over a period of time. RIL continuously seeks feedback to understand the impact of its initiatives which also includes visits by its CSR teams on a periodic basis. In addition, feedback is also sought from the village heads/Sarpanch to get an understanding of the impacts of the initiatives and opportunities for improvement.
4.

Steps undertaken to ensure that community development initiatives are successfully adopted by the community
RIL follows a participatory approach in the areas of intervention and encourages participation from communities for planning and implementation purposes. There is continuous engagement with communities for needs assessment. This engagement also supports the decision making process after taking the local context into consideration and brings about a sense of ownership among them. Their capacities are built through multiple training programmes, so they are self-sufficient and capable of managing the programme even in the absence of a third party.

The Company has a separate framework to deal with customer complaints. As on 31st March, 2015, 2,527 customer complaints were received out of which
2,435 were successfully resolved. Subsequently, most of these complaints have been resolved.
2.

Product information and product labelling
All marketing communication efforts of the Company adhere to the brand standards/ guidelines with regard to visual manifestation, brand promise and relevancy and saliency of the target group. RIL adheres to all legal statutes with respect to product labelling and display of product information. RIL follows the Globally Harmonised System for classification of chemicals and preparation of Material Safety
Data Sheets. Besides, RIL shares information with its customers on safe handling and use of products during distribution.

3.

Case filed by any stakeholder against the Company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on the end of financial year.
Nil

4.

Consumer survey/consumer satisfaction trends carried out by the Company
Customer satisfaction is RIL’s goal, which drives the Company to ensure its products deliver results that continuously meet customer requirements. To understand customers better, RIL follows several modes of engagement. These engagements include customer audits, customer surveys and call centres, direct feedback taken by visiting managers/plant personnel and factory visits organised for customers.
These modes help RIL to understand customer requirements, satisfaction levels and customer behaviour. RIL also conducts one-to-one meetings with customers to enable efficient communication and resolve specific needs. In addition, it conducts web-based customer satisfaction surveys.

Company’s direct contribution to community development projects
During FY 2014-15, RIL spent ` 760.58 crore on community development initiatives. Community development expenditure incurred by RIL is on rural transformation, healthcare, education, environment, protection of national heritage, art and culture, and disaster response.

5.

of its products and takes their feedback in addition to understanding their concerns.

To ascertain the medical care needs, multiple interactions are held with communities through village meetings, meetings with local administration and officials from the health department on the basis of which infrastructure is established. Through continuous feedback from the beneficiaries, more facilities and specialised services have been added in locations where there was a demand for them.

Principle 9
Businesses should engage with and provide value to their customers and consumers in a responsible manner Understanding customer needs is a key step in RIL’s endeavour towards developing an efficient product stewardship programme. RIL ensures utmost care is taken towards customer safety. Putting customers first has always been the approach of conducting business at RIL.
1. Percentage of customer complaints/consumer cases pending as on the end of financial year.
RIL conducts regular Customer Relation Meets (CRM) to educate and appraise customers about all aspects

RIL has also conducted third-party Mystery Customer
Audits, Customer Satisfaction Index and Call Centre evaluation studies for this purpose. This has helped
RIL to ensure periodical fulfilment of service delivery promise, conformance to internal norms and standards, identification of process improvement areas and understand customer attitude and behaviour stage to ascertain that needs are met at all stages.

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RIL’s alignment towards the NVG and it’s commitment towards social and environmental responsibility which has been disclosed in the Company’s GRI A+ application level check
Annual Sustainability Reports being published since 2005-06

NVG Principle

Reference in
Sustainability
Report

1

Businesses should conduct and govern themselves with
Ethics, Transparency and Accountability

Corporate
Governance

2

Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle Product
Stewardship

3

Businesses should promote the well-being of all employees Social Institution
Building

4

Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised

Stakeholder engagement 5

Businesses should respect and promote human rights

Social Institution
Building

6

Businesses should respect, protect and make efforts to restore the environment

Environment
Management

7

Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner

Corporate
Governance

8

Businesses should support inclusive growth and equitable development

Social Institution
Building

9

Businesses should engage with and provide value to their customers and consumers in a responsible manner

Product
Stewardship

For more information please refer sustainability reports http://www.ril.com/Sustainability/CorporateSustainability.aspx Details

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Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT
“Between my past, the present and the future, there is one common factor: Relationship and
Trust. This is the foundation of our growth.”
- Founder Chairman Shri Dhirubhai H. Ambani
In accordance with Clause 49 of the Listing Agreement with BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE), the report containing the details of
Corporate Governance systems and processes at Reliance
Industries Limited is as follows:
At Reliance Industries Limited (RIL), Corporate Governance is all about maintaining a valuable relationship and trust with all stakeholders. We consider stakeholders as partners in our success, and we remain committed to maximising stakeholders’ value, be it shareholders, employees, suppliers, customers, investors, communities or policy makers. This approach to value creation emanates from our belief that sound governance system, based on relationship and trust, is integral to creating enduring value for all. We have a defined policy framework for ethical conduct of businesses. We believe that any business conduct can be ethical only when it rests on the six core values of Customer Value, Ownership Mindset,
Respect, Integrity, One Team and Excellence.

STATEMENT ON COMPANY’S PHILOSOPHY ON
CODE OF GOVERNANCE
Corporate Governance encompasses a set of systems and practices to ensure that the Company’s affairs are being managed in a manner which ensures accountability, transparency and fairness in all transactions in the widest sense. The objective is to meet stakeholders’ aspirations and societal expectations. Good governance practices stem from the dynamic culture and positive mindset of the organisation. We are committed to meet the aspirations of all our stakeholders. This is demonstrated in shareholder returns, high credit ratings, governance processes and an entrepreneurial performance focused work environment.
Additionally, our customers have benefited from high quality products delivered at extremely competitive prices. The essence of Corporate Governance lies in promoting and maintaining integrity, transparency and accountability in the management’s higher echelons. The demands of
Corporate Governance require professionals to raise their competence and capability levels to meet the expectations in managing the enterprise and its resources effectively with the highest standards of ethics. It has thus become crucial to foster and sustain a culture that integrates all

components of good governance by carefully balancing the complex inter-relationship among the Board of
Directors, Audit Committee, Finance, Compliance and
Assurance teams, Auditors and the senior management.
Our employee satisfaction is reflected in the stability of our senior management, low attrition across various levels and substantially higher productivity. Above all, we feel honoured to be integral to India’s social development.
Details of several such initiatives are available in the
Report on Corporate Social Responsibility.
At RIL, we believe that as we move closer towards our aspirations of being a global corporation, our Corporate
Governance standards must be globally benchmarked.
Therefore, we have institutionalised the right building blocks for future growth. The building blocks will ensure that we achieve our ambition in a prudent and sustainable manner. RIL not only adheres to the prescribed Corporate
Governance practices as per Clause 49 of the Listing
Agreement with the Stock Exchanges in India (Listing
Agreement), but is also committed to sound Corporate
Governance principles and practices. It constantly strives to adopt emerging best practices being followed worldwide. It is our endeavour to achieve higher standards and provide oversight and guidance to the management in strategy implementation, risk management and fulfilment of stated goals and objectives.
Over the years, we have strengthened governance practices. These practices define the way business is conducted and value is generated. Stakeholders’ interests are taken into account, before making any business decision. RIL has the distinction of consistently rewarding its shareholders over 37 eventful years from its first IPO.
Since then, RIL has moved from one big idea to another and these milestones continue to fuel its relentless pursuit of ever-higher goals.
On stand-alone basis, we have grown by a Compounded
Annual Growth Rate (CAGR) of Revenues 25.8%, EBITDA
26.4% and Net Profit 27.4%. The financial markets have endorsed our sterling performance and the market capitalization has increased by CAGR of 31.7% during the same period. In terms of distributing wealth to our shareholders, apart from having a track record of uninterrupted dividend payout, we have also delivered consistent unmatched shareholder returns since listing.
The result of our initiative is our ever widening reach and recall. Our shareholder base has grown from 52,000 after the IPO to a consolidated present base of around 2.8 million. 02-45

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For decades, RIL is growing in step with India’s industrial and economic development. The Company has helped transform the Indian economy with big-ticket projects and world-class execution. The quest to help elevate
India’s quality of life continues unabated. It emanates from a fundamental article of faith: ‘What is good for India is good for Reliance’.
We believe, Corporate Governance is not just a destination, but a journey to constantly improve sustainable value creation. It is an upward-moving target that we collectively strive towards achieving. Our multiple initiatives towards maintaining the highest standards of governance are detailed in the following pages.

mitigation measures, financial reports from the CFO and business reports from each of the sector heads. Frequent and detailed interaction sets the agenda and provides the strategic roadmap for the Company’s future growth.

Ethics/Governance Policies
At RIL, we strive to conduct our business and strengthen our relationships in a manner that is dignified, distinctive and responsible. We adhere to ethical standards to ensure integrity, transparency, independence and accountability in dealing with all stakeholders. Therefore, we have adopted various codes and policies to carry out our duties in an ethical manner. Some of these codes and policies are:
Code of Conduct

Appropriate Governance Structure with defined roles and responsibilities
The Company has put in place an internal governance structure with defined roles and responsibilities of every constituent of the system. The Company’s shareholders appoint the Board of Directors, which in turn governs the Company. The Board has established seven Committees to discharge its responsibilities in an effective manner. RIL’s Company Secretary acts as the
Secretary to all the Committees of the Board constituted under the Companies Act, 1956 / Companies Act,
2013. The Chairman and Managing Director (CMD) provides overall direction and guidance to the Board.
Concurrently, the CMD is responsible for overall implementation. In the operations and functioning of the Company, the CMD is assisted by four Executive
Directors and a core group of senior level executives.

Code of Conduct for Prohibition of Insider Trading
Health, Safety and Environment (HSE) Policy
Vigil Mechanism and Whistle Blower Policy
Policy on Materiality of Related Party Transactions and on Dealing with Related Party Transactions
Corporate Social Responsibility Policy
Policy for Selection of Directors and determining
Directors Independence
Remuneration Policy for Directors, Key Managerial
Personnel and other Employees
Policy for determining Material Subsidiaries

Board Leadership

Audits and internal checks and balances

A majority of the Board, 7 out of 13, are Independent
Directors. At RIL, it is our belief that an enlightened Board consciously creates a culture of leadership to provide a long-term vision and policy approach to improve the quality of governance. The Board’s actions and decisions are aligned with the Company’s best interests.
It is committed to the goal of sustainably elevating the
Company’s value creation. The Company has defined guidelines and an established framework for the meetings of the Board and Board Committees. These guidelines seek to systematise the decision-making process at the meeting of the Board and Board Committees in an informed and efficient manner.

Deloitte Haskins & Sells LLP, Chartered Accountants,
M/s. Chaturvedi & Shah, Chartered Accountants, one of India’s leading audit firms and a member of the
Nexia’s global network of independent accounting and consulting firms and M/s. Rajendra & Co., Chartered
Accountants, Member of PrimeGlobal, an association of
Independent Accounting Firms, audit the accounts of the Company. The Company has an Internal Audit Cell besides external firms acting as independent internal auditors that reviews internal controls and operating systems and procedures. A dedicated Legal Compliance
Cell ensures that the Company conducts its businesses with high standards of legal, statutory and regulatory compliances. RIL has instituted a legal compliance programme in conformity with the best international standards, supported by a robust online system that covers the Company’s manufacturing units as well as its subsidiaries. The purview of this system includes various statutes, such as industrial and labour laws, taxation laws, corporate and securities laws and health, safety and environment regulations.

The Board critically evaluates the Company’s strategic direction, management policies and their effectiveness.
The agenda for the Board reviews include strategic review from each of the Board committees, a detailed analysis and review of annual strategic and operating plans and capital allocation and budgets. Additionally, the Board reviews related party transactions, possible risks and risk

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Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
At the heart of our processes is the extensive use of technology. This ensures robustness and integrity of financial reporting and internal controls, allows optimal use and protection of assets, facilitates accurate and timely compilation of financial statements and management reports and ensures compliance with statutory laws, regulations and company policies.

Management Initiatives for Controls and
Compliance
The Company has established the Reliance Management
System (RMS) as part of its transformation agenda. RMS incorporates an integrated framework for managing risks and internal controls. The internal financial controls have been documented, embedded and digitised in the business processes. Internal controls are regularly tested for design and operating effectiveness.

Best Corporate Governance practices
RIL maintains the highest standards of Corporate Governance.
It is the Company’s constant endeavour to adopt the best
Corporate Governance practices keeping in view the international codes of Corporate Governance and practices of well-known global companies. Some of the best implemented global governance norms include the following:
The Company has a designated Lead Independent
Director with a defined role.
All securities related filings with Stock Exchanges and
SEBI are reviewed every quarter by the Company’s
Stakeholders’ Relationship Committee of Directors.
The Company has independent Board Committees for matters related to Corporate Governance and stakeholders’ interface and nomination of Board members. The Company’s internal audit is also conducted by independent auditors.
The Company also undergoes quarterly secretarial audit conducted by an independent company secretary who is in whole-time practice. The quarterly secretarial audit reports are placed before the Board and the annual secretarial audit report placed before the Board, is included in the Annual Report.

RIL’s sustainability reporting journey
RIL commenced annual reporting on its triple-bottomline performance from the Financial Year 2004-05. All its sustainability reports are externally assured and Global
Reporting Initiative (GRI) application level checked.
The maiden report received ‘in-accordance’ status from
GRI and all subsequent reports are ‘GRI G3 Checked A+’ application level reports. From Financial Year 2006-07, in addition to referring GRI G3 Sustainability Reporting
Guidelines, RIL refers to the American Petroleum Institute
/ the International Petroleum Industry Environmental
Conservation Association Sustainability Reporting
Guidelines and the United Nations Global Compact
Principles. RIL has also aligned its sustainability activities with the focus areas of the World Business Council for
Sustainable Development. From the Financial Year 201112, Reliance adopted the newly published GRI G3.1 guidelines and is additionally referring to GRI G3.1 – Oil &
Gas Sector Supplement. RIL has aligned its sustainability report with the National Voluntary Guidelines on Social,
Environmental and Economic Responsibilities of Business framed by the Government of India.

Working towards Planet, People, Product,
Processes and Profit
RIL works towards attaining a sustained financial bottom line along with enhancing the natural human capital and product development. It is committed to reduce its negative impacts and enhance its positive impacts on the society as well as the natural environment.
RIL supports life cycle assessment studies being done by Indian Centre for Plastics in the Environment (ICPE) and also works with the Bureau of Indian Standards for formulating standards and guidelines.
In addition to making a positive economic contribution to the nation and society at large, it has focused its energies on identifying specific impact areas. It endeavours to alleviate the underprivileged and marginalized sections of the society and has an active engagement with them to ensure their holistic development.
It aims to develop innovative products and processes to sustain its growth momentum. It also invests in R&D across its businesses, to serve the current and emerging needs of growth and efficiency of its businesses, and to develop new path - breaking technologies.

Business and Functional Risk and Assurance
Committees (BRACs)

Social, Environmental and Economic
Responsibilities

To have a better assessment of the business and functional risks and to monitor risk mitigation effectiveness based on risk evaluation, the concept of
BRACs was introduced comprising senior management personnel in the said committee.

RIL is committed to create value for the nation and enhance the quality of life across the entire socioeconomic spectrum. RIL believes that Corporate Social
Responsibility extends beyond the ambit of business and should focus on a broad portfolio of assets - human,

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physical, environmental and social. RIL gives utmost importance to conservation of the natural capital at its operations. RIL is committed to responsible stewardship of the natural resources to conduct its operations in a sustainable manner. To strengthen its commitment to responsible business, the Board of the Company has adopted Business Responsibility Framework based on the principles of National Voluntary Guidelines on
Social, Environmental and Economic Responsibilities of
Business (NVG) as issued by the Ministry of Corporate
Affairs, Government of India. In sync with the same and Clause 55 of the Listing Agreement, a Business
Responsibility Report is attached forming part of the Annual Report. This Report is in addition to RIL’s
Sustainability Reporting in accordance with Global
Reporting Initiative (GRI).

General meetings, Payment of Dividend, Maintenance of
Registers and Records, Minutes of Meetings, Transmission of Shares and Debentures, Passing of Resolutions by
Circulation, Affixing of Common Seal and Board’s Report.
Although these standards, as of now, are recommendatory in nature, the Company substantially adheres to these standards voluntarily.

BOARD OF DIRECTORS
Board composition and category of Directors
The Company’s policy is to maintain optimum combination of Executive and Non-Executive Directors.
The composition of the Board and category of Directors are as follows:
Category
Promoter Directors

Shareholders’ communications
The Board recognises the importance of two-way communication with shareholders and giving a balanced report of results and progress and responding to questions and issues raised in a timely and consistent manner. RIL’s corporate website (www.ril.com) has information for institutional and retail shareholders alike. Shareholders seeking information related to their shareholding may contact the Company directly or through any of the
Investor service centres of the Company’s Registrars and
Transfer Agents spread over 82 cities across India, details of which are available on the Company’s website. RIL ensures that complaints and suggestions of its shareholders are responded to in a timely manner. A comprehensive and informative shareholders’ referencer is appended to this
Annual Report.

Role of the Company Secretary in overall governance process
The Company Secretary plays a key role in ensuring that the Board (including committees thereof ) procedures are followed and regularly reviewed. The Company
Secretary ensures that all relevant information, details and documents are made available to the Directors and senior management for effective decision-making at the meetings. The Company Secretary is primarily responsible to assist and advise the Board in the conduct of affairs of the Company, to ensure compliance with applicable statutory requirements and Secretarial Standards, to provide guidance to directors and to facilitate convening of meetings. He interfaces between the management and regulatory authorities for governance matters.

Observance of the Secretarial Standards issued by the Institute of Company Secretaries of India
The Institute of Company Secretaries of India (ICSI), one of
India’s premier professional bodies, has issued Secretarial
Standards on important aspects like Board meetings,

Executive Directors

Independent Directors

Name of Directors
Mukesh D. Ambani
Chairman and
Managing Director
Nita M. Ambani
Non-Executive
Non-Independent Director
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai

Smt. Nita M. Ambani is the spouse of Shri Mukesh D.
Ambani. Shri Nikhil R. Meswani and Shri Hital R. Meswani, are brothers. None of the other directors are related to any other director on the Board.

Selection of Independent Directors
Considering the requirement of skill sets on the Board, eminent people having an independent standing in their respective field/profession, and who can effectively contribute to the Company’s business and policy decisions are considered by the Human
Resources, Nomination and Remuneration Committee, for appointment, as Independent Directors on the
Board. The Committee, inter alia, considers qualification, positive attributes, area of expertise and number of Directorships and Memberships held in various committees of other companies by such persons in accordance with the Company’s Policy for Selection of
Directors and determining Directors’ independence. The
Board considers the Committee’s recommendation, and takes appropriate decision.

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Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
Every Independent Director, at the first meeting of the Board in which he participates as a Director and thereafter at the first meeting of the Board in every financial year, gives a declaration that he meets the criteria of independence as provided under law.

discuss matters pertaining to the Company’s affairs and put forth their views to the Lead Independent Director.
The Lead Independent Director takes appropriate steps to present Independent Directors’ views to the Chairman and
Managing Director.

Familiarisation programmes for Board Members

Six meetings of Independent Directors were held during the year.

The Board members are provided with necessary documents/brochures, reports and internal policies to enable them to familiarise with the Company’s procedures and practices.
Periodic presentations are made at the Board and Board
Committee Meetings, on business and performance updates of the Company, global business environment, business strategy and risks involved. Detailed presentations on the Company’s business segments were made at the separate meetings of the Independent
Directors held during the year.
Quarterly updates on relevant statutory changes and landmark judicial pronouncements encompassing important laws are regularly circulated to the Directors.
Site visits to various plant locations are organized for the
Directors to enable them to understand the operations of the Company.
The details of such familiarization programmes for Independent Directors are posted on the website of the Company and can be accessed at http://www.ril.com/getattachment/3b0559bd-20fd4e3e-8a35-1c0a8f090224/Familiarisation-Programme-forIndependent-Director.aspx Lead Independent Director
The Company’s Board of Directors has designated Shri
Mansingh L. Bhakta as the Lead Independent Director. The
Lead Independent Director’s role is as follows:
To preside over all meetings of Independent Directors
To ensure there is an adequate and timely flow of information to Independent Directors
To liaise between the Chairman and Managing Director, the Management and the Independent Directors
To preside over meetings of the Board and Shareholders when the Chairman and Managing Director is not present, or where he is an interested party
To perform such other duties as may be delegated to the
Lead Independent Director by the Board/ Independent
Directors

Meetings of Independent Directors
The Company’s Independent Directors meet at least once in every financial year without the presence of Executive
Directors or management personnel. Such meetings are conducted informally to enable Independent Directors to

Code of Conduct
The Company has in place a comprehensive Code of
Conduct (the Code) applicable to all the employees and
Non-executive Directors including Independent Directors.
The Code is applicable to Non-executive Directors including Independent Directors to such extent as may be applicable to them depending on their roles and responsibilities. The Code gives guidance and support needed for ethical conduct of business and compliance of law. The Code reflects the values of the Company viz.
- Customer Value, Ownership Mind-set, Respect, Integrity,
One Team and Excellence.
A copy of the Code has been put on the Company’s website (www.ril.com). The Code has been circulated to
Directors and Management Personnel, and its compliance is affirmed by them annually.
A declaration signed by the Company’s Chairman and
Managing Director is published in this Report.

Directors’ Profile
A brief resume of Directors, nature of their expertise in specific functional areas and names of companies in which they hold Directorships, Memberships/ Chairmanships of
Board Committees, and shareholding in the Company are provided in this Report.

BOARD MEETINGS, BOARD COMMITTEE
MEETINGS AND PROCEDURES
Institutionalized decision-making process
The Board of Directors is the apex body constituted by shareholders for overseeing the Company’s overall functioning. The Board provides and evaluates the
Company’s strategic direction, management policies and their effectiveness, and ensures that shareholders’ longterm interests are being served.
The Board has constituted seven Committees, namely
Audit Committee, Human Resources, Nomination and
Remuneration Committee, Corporate Social Responsibility and Governance Committee, Stakeholders’ Relationship
Committee, Health, Safety and Environment Committee,
Finance Committee and Risk Management Committee.
The Board is authorised to constitute additional functional
Committees, from time to time, depending on business needs. 02-45

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The Company’s internal guidelines for Board/Board
Committee meetings facilitate the decision making process at its meetings in an informed and efficient manner. The following sub-sections deal with the practice of these guidelines at RIL.

Scheduling and selection of agenda items for
Board meetings
Minimum five pre-scheduled Board meetings are held annually. Additional Board meetings are convened by giving appropriate notice to address the Company’s specific needs. In case of business exigencies or urgency of matters, resolutions are passed by circulation.
The meetings are usually held at the Company’s office at
Maker Chambers IV, 222 Nariman Point, Mumbai 400 021.
The Company’s various business heads / service heads are advised to schedule their work plans well in advance, particularly with regard to matters requiring discussion/ approval/decision at Board/Board Committee meetings.
Such matters are communicated by them to the Company
Secretary in advance so that they are included in the agenda for Board/Board Committee meetings.
The Board is given presentations covering Finance, Sales,
Marketing, the Company’s major business segments and their operations, overview of business operations of major subsidiary companies, global business environment, the
Company’s business areas, including business opportunities and strategy and risk management practices before taking on record the Company’s quarterly/annual financial results.
The items / matters required to be placed before the Board, inter alia, include:
Annual operating plans of businesses and budgets including capital budgets and any updates
Quarterly results of the Company and its operating divisions or business segments
Company’s annual Financial Results, Financial
Statements, Auditors’ Report and Board’s Report
Minutes of meetings of the Audit Committee and other
Committees of the Board
Show cause, demand, prosecution notices and penalty notices, which are materially important
Fatal or serious accidents, dangerous occurrences, and any material effluent or pollution problems
Any material default in financial obligations to and by the Company, or substantial non-payment for goods sold by the Company
Any issue, which involves possible public or product liability claims of substantial nature, including any judgment or order, which may have passed strictures on

the conduct of the Company or taken an adverse view regarding another enterprise that can have negative implications on the Company
Details of any joint venture or collaboration agreement
Transactions that involve substantial payment towards goodwill, brand equity or intellectual property
Significant labour problems and their proposed solutions. Any significant development in Human
Resources/Industrial Relations front like implementation of Voluntary Retirement Scheme, etc.
Sale of material nature of investments, subsidiaries, assets, which is not in normal course of business.
Quarterly details of foreign exchange exposures, and steps taken by management to limit risks of adverse exchange rate movement, if material
Non-compliance of any regulatory, statutory or listing requirements, and shareholders’ service, such as dividend non-payment, share transfer delay (if any), among others
Appointment,
Directors

remuneration

and

resignation

of

Formation/reconstitution of Board Committees
Terms of reference of Board Committees
Minutes of Board meetings of unlisted subsidiary companies Declaration of Independent Directors at the time of appointment/annually Disclosure of Directors’ interest and their shareholding
Appointment or removal of the Key Managerial
Personnel
Appointment of Internal Auditors and Secretarial
Auditors
Quarterly / Annual Secretarial Audit reports submitted by Secretarial Auditors
Dividend declaration
Quarterly summary of all long-term borrowings made, bank guarantees issued and loans and investments made Significant changes in accounting policies and internal controls Takeover of a company or acquisition of a controlling or substantial stake in another company
Statement of significant transactions, related party transactions and arrangements entered by unlisted subsidiary companies

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Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
Issue of securities including debentures
Recommending appointment of and fixing of remuneration of the Auditors as recommended by the
Audit Committee

Recording minutes of proceedings at Board and
Committee meetings

Internal Audit findings and External Audit Reports
(through the Audit Committee)

The Company Secretary records minutes of proceedings of each Board and Committee meeting. Draft minutes are circulated to Board/ Board Committee members for their comments. The minutes are entered in the Minutes Book within 30 days from the conclusion of the meeting.

Proposals for major investments, amalgamations and reconstructions

Post meeting follow-up mechanism

mergers,

Status of business risk exposures, its management and related action plans
Making of loans and investment of surplus funds
Borrowing of monies, giving guarantees or providing security in respect of loans
Buyback of securities by the Company
Diversify the business of the Company
Brief on statutory developments, changes in government policies, among others with impact thereof, Directors’ responsibilities arising out of any such developments
Compliance Certificate certifying compliance with all laws as applicable to the Company
Reconciliation of Share Capital Audit Report under SEBI
(Depositories and Participants) Regulations, 1996
Brief on information disseminated to the press
The Chairman of the Board and Company Secretary, in consultation with other concerned members of the senior management, finalise the agenda for Board meetings.

Board material distributed in advance
The agenda and notes on agenda are circulated to
Directors in advance, and in the defined agenda format.
All material information is incorporated in the agenda for facilitating meaningful and focused discussions at the meeting. Where it is not practicable to attach any document to the agenda, it is tabled before the meeting with specific reference to this effect in the agenda. In special and exceptional circumstances, additional or supplementary item(s) on the agenda are permitted.

The guidelines for Board and Board Committee meetings facilitate an effective post meeting follow-up, review and reporting process for decisions taken by the Board and
Board Committees thereof. Important decisions taken at
Board/Board Committee meetings are communicated promptly to the concerned departments/divisions.
Action-taken report on decisions/minutes of the previous meeting(s) is placed at the succeeding meeting of the
Board/Board Committee for noting.

Compliance
The Company Secretary, while preparing the agenda, notes on agenda and minutes of the meeting(s), is responsible for and is required to ensure adherence to all applicable laws and regulations, including the Companies Act, 1956/
Companies Act, 2013 read with rules issued thereunder, as applicable and the Secretarial Standards recommended by the Institute of Company Secretaries of India.

Number of Board meetings held with dates
Seven Board meetings were held during the year, as against the minimum requirement of four meetings.
The details of Board meetings are given below:
Board Strength

No. of Directors
Present

April 18, 2014

14

13

May 29, 2014

14

14

July 19, 2014

14

14

October 13, 2014

14

12

December 08, 2014

14

13

Date

January 16, 2015

14

14

February 19, 2015

14

11

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ATTENDANCE OF DIRECTORS AT BOARD MEETINGS, LAST ANNUAL GENERAL MEETING (AGM) AND
NUMBER OF OTHER DIRECTORSHIPS AND CHAIRMANSHIPS / MEMBERSHIPS OF COMMITTEES OF
EACH DIRECTOR IN VARIOUS COMPANIES:
Attendance at meetings during
2014-15
Board

AGM

No. of Other
Directorship(s) as on 31-03-2015
(1)

Mukesh D. Ambani

7

Yes

4

Nil

Nikhil R. Meswani

7

Yes

1

1 (as Chairman)

Hital R. Meswani

7

Yes

2

1

P.M.S. Prasad

7

Yes

1

1

Pawan Kumar Kapil

5

Yes

Nil

Nil

Ramniklal Ambani *

1

No

N.A.

N.A.

Mansingh L. Bhakta

6

Yes

Nil

Nil

Yogendra P. Trivedi

7

Yes

7

1

Dr. Dharam Vir Kapur

7

Yes

5

4 (including 3 as Chairman)

Mahesh P. Modi #

6

Yes

N.A.

N.A.

Prof. Ashok Misra

7

Yes

1

2

Prof. Dipak C. Jain

7

Yes

3

2

Dr. Raghunath A. Mashelkar

5

Yes

11

3

Adil Zainulbhai

7

Yes

6

5 (including 4 as Chairman)

Nita M. Ambani ^

5

N.A.

3

Nil

Name of the Director

No. of Membership(s) /Chairmanship(s) of Board Committees in other
Companies as on 31-03-2015
(2)

(1)

The Directorships, held by Directors as mentioned above, do not include directorships in foreign companies.

(2)

In accordance with Clause 49 of the Listing Agreement, Memberships/Chairmanships of only Audit Committees and Stakeholders’ Relationship Committees in all public limited companies (excluding Reliance Industries Limited) have been considered.

*

Ceased to be a Director w.e.f. June 18, 2014. 2 meetings were held during his tenure.

#

Ceased to be a Director w.e.f February 15, 2015. 6 meetings were held during his tenure.

^

Appointed as Director, w.e.f. June 18, 2014. 5 meetings were held during her tenure.

Video/tele-conferencing facilities are used to facilitate Directors travelling abroad, or present at other locations, to participate in the meetings.

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Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
BOARD COMMITTEES:
Details of the Board Committees and other related information are provided hereunder:

Composition of Board Committees
Human Resources, Nomination and
Remuneration Committee

Audit Committee
1. Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)

1. Adil Zainulbhai
Independent Director
(Chairman of the Committee)

2. Dr. Raghunath A. Mashelkar
Independent Director

2. Yogendra P. Trivedi
Independent Director

3. Adil Zainulbhai
Independent Director

3. Dr. Dharam Vir Kapur
Independent Director

Corporate Social Responsibility and Governance Committee
1. Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)

4. Dr. Raghunath A. Mashelkar
Independent Director

Stakeholders’ Relationship Committee

2. Nikhil R. Meswani
Executive Director

1. Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)

3. Dr. Dharam Vir Kapur
Independent Director

2. Nikhil R. Meswani
Executive Director

4. Dr. Raghunath A. Mashelkar
Independent Director

3. Hital R. Meswani
Executive Director
4. Prof. Ashok Misra
Independent Director

Health, Safety and
Environment Committee
Finance Committee
1. Hital R. Meswani
Executive Director
(Chairman of the Committee)

1. Mukesh D. Ambani
Chairman and Managing Director
(Chairman of the Committee)

2. Dr. Dharam Vir Kapur
Independent Director

2. Nikhil R. Meswani
Executive Director

3. P.M.S. Prasad
Executive Director

3. Hital R. Meswani
Executive Director

4. Pawan Kumar Kapil
Executive Director

Risk Management Committee*
1. Adil Zainulbhai
Independent Director
(Chairman of the Committee)
2. Hital R. Meswani
Executive Director

4. Alok Agarwal
Chief Financial Officer
5. Srikanth Venkatachari
Joint Chief Financial Officer

3. P.M.S. Prasad
Executive Director

* Constituted on October 13, 2014 in accordance with provisions of Clause 49 of the Listing Agreement.

Shri K. Sethuraman, Group Company Secretary and Chief Compliance Officer, is the Secretary of all Board
Committees constituted under the Companies Act, 1956 / Companies Act, 2013.

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Corporate Governance Report

Meetings of Board Committees held during the year and Directors’ attendance:

Board Committees

Human
Resources
Audit
Nomination
Committee and Remuneration
Committee

Meetings held

Corporate
Social
Responsibility and Governance
Committee

Stakeholders’
Relationship
Committee

Health,
Safety
and
Environment
Committee
4

Risk
Finance Management
Committee
Committee
(1)

9

6

4

4

4

1

Mukesh D. Ambani

N.A.

N.A.

N.A.

N.A.

N.A.

4

N.A.

Nikhil R. Meswani

N.A.

N.A.

4

4

N.A.

4

N.A.

Directors’ Attendance

Hital R. Meswani

N.A.

N.A.

N.A.

4

4

4

1

P.M.S. Prasad

N.A.

N.A.

N.A.

N.A.

2

N.A.

0

Pawan Kumar Kapil

N.A.

N.A.

N.A.

N.A.

3

N.A.

N.A.

Mansingh L. Bhakta

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

9

6

4

4

N.A.

N.A.

N.A.
N.A.

Yogendra P. Trivedi
Dr. Dharam Vir Kapur

N.A.

6

4

N.A.

4

N.A.

Mahesh P. Modi *

7

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Prof. Ashok Misra

N.A.

N.A.

N.A.

4

N.A.

N.A.

N.A.

Prof. Dipak C. Jain

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

8

6

3

N.A.

N.A.

N.A.

N.A.

Dr. Raghunath A. Mashelkar
Adil Zainulbhai

9

6

N.A.

N.A.

N.A.

N.A.

1

Nita M. Ambani

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A. – Not a member of the Committee
*

Ceased to be a member of the Audit Committee w.e.f. February 15, 2015. 8 meetings were held during his tenure.

(1)

The Committee was constituted on October 13, 2014

Procedure at Committee Meetings

To obtain outside legal or other professional advice

The Company’s guidelines relating to Board meetings are applicable to Committee meetings as far as practicable.
Each Committee has the authority to engage outside experts, advisors and counsels to the extent it considers appropriate to assist in its function. Minutes of proceedings of Committee meetings are circulated to the Directors and placed before Board meetings for noting.

To secure attendance of outsiders with relevant expertise, if it considers necessary

Terms of Reference and other details of Board
Committees

Audit Committee
Composition of the Committee
Yogendra P. Trivedi
(Chairman of the Committee)
Dr. Raghunath A. Mashelkar
Adil Zainulbhai

Role of the Audit Committee, inter alia, includes the following: Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible Recommending the appointment, remuneration and terms of appointment of statutory auditors including cost auditors of the Company

Independent Director

Approving payment to statutory auditors, including cost auditors, for any other services rendered by them

Independent Director
Independent Director

Reviewing with the management, the annual financial statements and auditors report thereon before submission to the Board for approval, with particular reference to:

The Committee’s composition meets with requirements of
Section 177 of the Companies Act, 2013 and Clause 49 of the Listing Agreement. Members of the Audit Committee possess financial / accounting expertise / exposure.
Powers of the Audit Committee
To investigate any activity within its terms of reference
To seek information from any employee

Matters required to be included in the Directors’
Responsibility Statement to be included in the
Board’s Report in terms of clause (c) of sub-section 3 of Section 134 of the Companies Act, 2013;
Changes, if any, in accounting policies and practices and reasons for the same;

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Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
Major accounting entries involving estimates based on the exercise of judgement by the management;
Significant adjustments made in financial statements arising out of audit findings;

To look into the reasons for substantial defaults, if any, in the payment to depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors

Compliance with listing and other legal requirements relating to financial statements;

To review the functioning of the Vigil Mechanism and
Whistle Blower mechanism

Disclosure of any related party transactions; and

Approval of appointment of the CFO (i.e. the wholetime Finance Director or any other person heading the finance function or discharging that function) after assessing qualifications, experience and background, etc. of the candidate

Qualifications in draft audit report.
Reviewing, with the management, the quarterly financial statements before submission to the Board for approval Monitoring and reviewing with the management, the statement of uses/ application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilised for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter
Reviewing and monitoring the auditors independence and performance, and effectiveness of audit process
Approval or any subsequent modification transactions of the Company with related parties

of

Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
Reviewing financial statements, in particular the investments made by the Company’s unlisted subsidiaries Reviewing the following information:
The Management Discussion and Analysis of financial condition and results of operations;
Statement of significant related party transactions
(as defined by the Audit Committee), submitted by management; Scrutiny of inter-corporate loans and investments

Management letters/letters of internal control weaknesses issued by the statutory auditors;

Valuation of undertakings or assets of the Company, wherever it is necessary

Internal audit reports relating to internal control weaknesses; and

Evaluation of internal financial controls and risk management systems

Reviewing the appointment, removal and terms of remuneration of the Chief internal auditor / internal auditor(s). Reviewing, with the management, the performance of statutory auditors and internal auditors, adequacy of internal control systems
Formulating the scope, functioning, periodicity and methodology for conducting the internal audit
Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit
Discussion with internal auditors of any significant findings and follow-up thereon
Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board
Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post audit discussion to ascertain any area of concern General
The representatives of statutory auditors are permanent invitees to the Audit Committee Meetings. They have attended all the Audit Committee meetings held during the year. Executives of Accounts Department, Finance
Department, Corporate Secretarial Department and
Internal Audit department and representatives of internal auditors attend Audit Committee Meetings. The cost auditors attend the Audit Committee Meeting where cost audit reports are discussed. The due date for filing the cost audit reports in XBRL mode for the financial year ended March 31, 2014 was September 27, 2014 and the cost audit reports were filed by the Lead Cost Auditor on September 23, 2014. The due date for filing the cost audit reports for the financial year ended March 31, 2015 is October 30, 2015.
The internal auditor reports directly to the Audit
Committee.
The Chairman of the Audit Committee was present at the last Annual General Meeting held on June18, 2014.

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Meeting Details
Nine meetings (including one adjourned meeting) of the
Audit Committee were held during the year. The details of meetings and attendance are given on page no. 131 of this Report.

Human Resources, Nomination and
Remuneration Committee
Composition of the Committee
Adil Zainulbhai
(Chairman of the Committee)
Yogendra P. Trivedi

Independent Director
Independent Director

Dr. Dharam Vir Kapur

Independent Director

Dr. Raghunath A. Mashelkar

Independent Director

The Committee’s constitution and terms of reference are in compliance with provisions of the Companies Act, 2013,
Clause 49 of the Listing Agreement and Securities and
Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, as amended from time to time.
Terms of Reference of the Committee, inter alia, includes the following:
To identify persons who are qualified to become
Directors and who may be appointed in senior management in accordance with the criteria laid down and to recommend to the Board their appointment and/or removal
To carry out evaluation of every Director’s performance
To formulate the criteria for determining qualifications, positive attributes and independence of a Director, and recommend to the Board a policy, relating to the remuneration for the Directors, key managerial personnel and other employees
To formulate the criteria for evaluation of Independent
Directors and the Board
To devise a policy on Board diversity
To recommend/review remuneration of the Managing
Director(s) and Whole-time Director(s) based on their performance and defined assessment criteria
To administer, monitor and formulate detailed terms and conditions of the Employees’ Stock Option Scheme including: the quantum of options to be granted under
Employees’ Stock Option Scheme per employee and in aggregate; the conditions under which option vested in employees may lapse in case of termination of employment for misconduct; the exercise period within which the employee should exercise the option, and that the option would lapse on failure to exercise the option within the exercise period;

the specified time period within which the employee shall exercise the vested options in the event of termination or resignation of an employee; the right of an employee to exercise all options vested in him at one time or various points of time within the exercise period; the procedure for making a fair and reasonable adjustment to the number of options and to the exercise price in case of corporate actions, such as rights issues, bonus issues, merger, sale of division and others; the granting, vesting and exercising of options in case of employees who are on long leave; and the procedure for cashless exercise of options.
To carry out any other function as is mandated by the Board from time to time and / or enforced by any statutory notification, amendment or modification, as may be applicable;
To perform such other functions as may be necessary or appropriate for the performance of its duties.
Meeting Details
Six meetings of the Human Resources, Nomination and
Remuneration Committee were held during the year. The details of meeting and attendance are given on page no.
131 of this Report.
The details relating to remuneration of Directors, as required under Clause 49 of the Listing Agreement, have been given under a separate section, viz. ‘Directors’
Remuneration’ in this report.

Stakeholders’ Relationship Committee
Composition of the Committee
Yogendra P. Trivedi
(Chairman of the Committee)
Nikhil R. Meswani

Independent Director
Executive Director

Hital R. Meswani

Executive Director

Prof. Ashok Misra

Independent Director

The ‘Stakeholders’ Relationship Committee’ (SR
Committee) was constituted by the Board on April 18,
2014 consequent to the dissolution of the ‘Shareholders’/
Investors’ Grievance Committee’ (SIG Committee). The SR
Committee is primarily responsible to review all matters connected with the Company’s transfer of securities and redressal of shareholders’ / investors’ / security holders’ complaints. The Committee also monitors the implementation and compliance with the Company’s
Code of Conduct for prohibition of Insider Trading.
The SR Committee’s composition and the terms of reference meet with the requirements of Clause 49 of the
Listing Agreement and provisions of the Companies Act,
2013.

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Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
Terms of Reference of the Committee, inter alia, includes the following:
Oversee and review all matters connected with the transfer of the Company’s securities
Approve issue of the Company’s duplicate share / debenture certificates
Consider, resolve and monitor redressal of investors’
/ shareholders’ / security holders’ grievances related to transfer of securities, non-receipt of Annual Report, non-receipt of declared dividend etc.
Oversee the performance of the Company’s Registrars and Transfer Agents
Recommend methods to upgrade the standard of services to investors
Monitor implementation and compliance with the
Company’s Code of Conduct for Prohibition of Insider
Trading
Carry out any other function as is referred by the Board from time to time and / or enforced by any statutory notification / amendment or modification as may be applicable Perform such other functions as may be necessary or appropriate for the performance of its duties
Meeting Details
Four meetings (including one of SIG Committee) of the
SR Committee were held during the year. The details of meetings and attendance are given on page no. 131 of this Report.
Compliance Officer
Shri K. Sethuraman, Group Company Secretary and
Chief Compliance Officer, is the Compliance Officer for complying with requirements of Securities Laws and
Listing Agreements with Stock Exchanges.
Prohibition of Insider Trading
With a view to regulate trading in securities by the directors and designated employees, the Company has adopted a
Code of Conduct for Prohibition of Insider Trading.
Investor Grievance Redressal
The number of complaints received and resolved to the satisfaction of investors during the year under review and their break-up are as under:
Type of Complaints
Non-Receipt of Annual Reports
Non-Receipt of Dividend Warrants
Non-Receipt of Interest/ Redemption
Warrants
Non-Receipt of Certificates

TOTAL

Number of
Complaints
202
1755
117
226
2300

As on March 31, 2015, no complaints were outstanding.

Corporate Social Responsibility and Governance
Committee
Composition of the Committee
Yogendra P. Trivedi
(Chairman of the Committee)
Nikhil R. Meswani

Independent Director
Executive Director

Dr. Dharam Vir Kapur

Independent Director

Dr. Raghunath A. Mashelkar

Independent Director

The Committee’s prime responsibility is to assist the
Board in discharging its social responsibilities by way of formulating and monitoring implementation of the framework of ‘corporate social responsibility policy’, observe practices of Corporate Governance at all levels, and to suggest remedial measures wherever necessary.
The Board has also empowered the Committee to look into matters related to sustainability and overall governance.
The Committee’s constitution and terms of reference meet with the requirements of the Companies Act, 2013.
Terms of Reference of the Committee, inter alia, includes the following:
To formulate and recommend to the Board, a Corporate
Social Responsibility (CSR) Policy indicating activities to be undertaken by the Company in compliance with provisions of the Companies Act, 2013 and rules made thereunder To recommend the amount of expenditure to be incurred on the CSR activities
To monitor the implementation of the CSR Policy of the
Company from time to time
To approve the Corporate Sustainability Reports and oversee the implementation of sustainability activities
To oversee the implementation of polices contained in the Business Responsibility Policy Manual and to make any changes / modifications, as may be required, from time to time and to review and recommend the
Business Responsibility Reports (BRR) to the Board for its approval
To observe practices of Corporate Governance at all levels and to suggest remedial measures wherever necessary To ensure compliance with Corporate Governance norms prescribed under Listing Agreements with Stock
Exchanges, the Companies Act and other statutes or any modification or re-enactment thereof
To advise the Board periodically with respect to significant developments in the law and practice of
Corporate Governance and to make recommendations to the Board for appropriate revisions to the Company’s
Corporate Governance Guidelines

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To monitor the Company’s compliance with Corporate
Governance Guidelines and applicable laws and regulations and make recommendations to the Board on all such matters and on any corrective action to be taken, as the Committee may deem appropriate
To review and assess the adequacy of the Company’s
Corporate Governance Manual, Code of Conduct for
Directors and Senior Management, Code of Ethics and other internal policies and guidelines and monitor that principles described therein are being incorporated into the Company’s culture and business practices
To formulate / approve codes and / or policies for better governance To provide correct inputs to the media so as to preserve and protect the Company’s image and standing
To disseminate factually correct information to investors, institutions and the public at large
To establish oversight on important corporate communication on behalf of the Company with the assistance of consultants / advisors, if necessary
To ensure institution of standardised channels of internal communications across the Company to facilitate a high level of disciplined participation
To carry out any other function as is mandated by the Board from time to time and/or enforced by any statutory notification, amendment or modification as may be applicable or as may be necessary or appropriate for performance of its duties.
Meeting Details
Four meetings of the Corporate Social Responsibility and
Governance Committee were held during the year. The details of meetings and attendance are given on page no.
131 of this Report.

Health, Safety and Environment Committee
Composition of the Committee
Hital R. Meswani
(Chairman of the Committee)

Executive Director

Dr. Dharam Vir Kapur

Independent Director

P.M.S. Prasad

Executive Director

Pawan Kumar Kapil

Executive Director

The Health, Safety and Environment Committee is primarily responsible to monitor and ensure the highest standards of environmental, health and safety norms are maintained, and the Company’s operations are in compliance with applicable pollution and environmental laws across all locations. The Committee fulfils its responsibilities by reviewing the management of health, safety, environmental and social impacts of the Company’s various projects and operations.

Terms of Reference of the Committee, inter alia, includes the following:
Monitoring and ensuring the highest standards of environmental, health and safety norms
Ensuring compliance with applicable pollution and environmental laws at the Company’s works / factories
/ locations by putting in place effective systems in this regard and reviewing the same periodically
Reviewing, as the Committee deems appropriate, the
Company’s health, safety and environment related policy and making recommendations as necessary
Reviewing the Company’s performance on health, safety and environment related matters and suggesting improvements as the Committee may deem necessary
Reviewing procedures and controls being followed at the Company’s various manufacturing facilities and plants for compliance with relevant statutory provisions
Reviewing regularly and making recommendations about changes to the charter of the Committee
Obtaining or performing an annual evaluation of the
Committee’s performance and making appropriate recommendations. Meeting Details
Four meetings of the Health, Safety and Environment
Committee were held during the year. The details of the meetings and attendance are given on page no. 131 of this Report.

Finance Committee
Composition of the Committee
Mukesh D. Ambani
(Chairman of the Committee)
Nikhil R. Meswani
Hital R. Meswani

Chairman and
Managing Director
Executive Director
Executive Director

Terms of Reference of the Committee, inter alia, includes the following:
Review the Company’s financial policies, risk assessment and minimisation procedures, strategies and capital structure, working capital and cash flow management, and make such reports and recommendations to the
Board with respect thereto, as it may deem advisable
Review banking arrangements and cash management
Exercise all powers to borrow money (otherwise than by issue of debentures) within limits approved by the
Board, and take necessary actions connected therewith, including refinancing for optimisation of borrowing costs Give guarantees/issue letters of comfort/providing securities within the limits approved by the Board
Borrow money by way of loan and/or issue and allot bonds/notes denominated in one or more foreign currencies in international markets for the purpose of refinancing the existing debt, capital expenditure,

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Reliance Industries Limited

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED) general corporate purposes, including working capital requirements and possible strategic investments within limits approved by the Board
Provide corporate guarantee/performance guarantee by the Company within the limits approved by the
Board
Approve opening and operation of Investment
Management Accounts with foreign banks and appoint them as agents, establishment of representative/sales offices in or outside India
Carry out any other function as is mandated by the
Board from time to time and/or enforced by any statutory notification, amendment or modification as may be applicable
Other transactions or financial issues that the Board may desire to have them reviewed by the Finance
Committee
Delegate authorities from time to time to the executives/ authorised persons to implement the Committee’s decisions Review regularly and make recommendations about changes to the charter of the Committee

Clause 49 of the Listing Agreement. The Committee’s prime responsibility is to implement and monitor the risk management plan and policy of the Company. The
Committee’s constitution meets with the requirements of
Clause 49 of the Listing Agreement.
Role and Responsibilities of the Committee includes the following:
Framing of Risk Management Plan and Policy
Overseeing implementation of Risk Management Plan and Policy
Monitoring of Risk Management Plan and Policy
Validating the process of risk management
Validating the procedure for Risk Minimisation
Periodically reviewing and evaluating the Risk
Management Policy and practices with respect to risk assessment and risk management processes
Continually obtaining reasonable assurance from management that all known and emerging risks have been identified and mitigated or managed
Performing such other functions as may be necessary or appropriate for the performance of its oversight function Meeting Details
Four meetings of the Finance Committee were held during the year. The details of meetings and attendance are given on page no. 131 of this Report.

Meeting Details

Risk Management Committee

Directors’ Remuneration

Composition of the Committee

Remuneration policy
The Company’s Remuneration Policy for Directors, Key
Managerial Personnel and other employees is annexed as Annexure IIIB to the Directors’ Report. Further, the
Company has devised a Policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors.

Adil Zainulbhai
(Chairman of the Committee)
Hital R. Meswani
P.M.S. Prasad
Alok Agarwal
Srikanth Venkatachari

Independent Director
Executive Director
Executive Director
Chief Financial Officer
Joint Chief Financial Officer

The Risk Management Committee (RM Committee) was constituted by the Board on October 13, 2014 adhering to the requirements of the Companies Act, 2013 and

One meeting of the Committee was held during the year and the details of meeting and attendance are given on page no. 131 of this Report.

The Company’s remuneration policy is directed towards rewarding performance based on review of achievements periodically. The remuneration policy is in consonance with the existing industry practice.

Remuneration paid to the Chairman and Managing Director and Whole-time Directors during 2014-15:
(` in crore)
Name of the Director

Salary

Perquisites and allowances Retiral benefits Commission payable Performance
Linked Incentive*

Total

Stock options granted

Mukesh D. Ambani

4.16

0.60

0.83

9.41

-

15.00

Nil

Nikhil R. Meswani

1.15

1.45

0.23

9.20

-

12.03

Nil

Hital R. Meswani

1.15

1.45

0.23

9.20

-

12.03

Nil

P.M.S. Prasad

0.86

1.35

0.15

-

3.67

6.03

Nil

Pawan Kumar Kapil

0.50

0.75

0.09

-

1.07

2.41

Nil

* Performance Linked Incentive for the financial year (FY) 2013-14 was paid during the FY 2014-15.

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Financial Statements

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Corporate Governance Report

The Chairman and Managing Director’s compensation has been set at ` 15 crore as against ` 38.86 crore as approved, reflecting his desire to continue to set a personal example for moderation in managerial compensation levels.
Performance criteria for two Executive Directors, entitled for Performance Linked Incentive (PLI), are determined by the Human Resources, Nomination and Remuneration
Committee.
The tenure of office of the Managing Director and Wholetime Directors is for five years from their respective dates of appointments, and can be terminated by either party by giving three months notice in writing. There is no separate provision for payment of severance fees.
Sitting fee and commission paid on net profit to NonExecutive Directors:
Name of the
Non-Executive
Director

(` in Lakh)
Sitting
Fee

Commission

Total

Ramniklal H. Ambani

1.00

21.66

22.66

Mansingh L. Bhakta

12.00

100.00

112.00

Yogendra P. Trivedi

36.00

100.00

136.00

Dr. Dharam Vir Kapur

27.00

100.00

18.00

87.96

105.96

Prof. Ashok Misra

17.00

100.00

11.00

100.00

28.00

100.00

28.00

100.00

5.00

78.64

83.64

183.00

888.26

The date and time of Annual General Meetings held during last three years, and the special resolution(s) passed thereat, are as follows:

128.00

Nita M. Ambani

GENERAL BODY MEETINGS
Annual General Meetings
During the preceding three years, the Company’s Annual
General Meetings were held at Birla Matushri Sabhagar,
19, New Marine Lines, Mumbai - 400020.

128.00

Adil Zainulbhai

Prof. Dipak C. Jain and Shri Adil Zainulbhai, the Company’s
Independent Directors have been appointed as
Independent Directors on the Board of Reliance Retail
Ventures Limited and Reliance Jio Infocomm Limited, subsidiaries of the Company.

111.00

Dr. Raghunath A.
Mashelkar

A statement containing all significant transactions and arrangements entered into by unlisted subsidiary companies is placed before the Company’s Board.

117.00

Prof. Dipak C. Jain

Minutes of Board meetings of unlisted subsidiary companies are placed before the Company’s Board regularly. 127.00

Mahesh P. Modi

Financial statements, in particular investments made by unlisted subsidiary companies, are reviewed quarterly by the Company’s Audit Committee.

1071.26

TOTAL

During the year, the Company paid ` 0.36 crore as professional fees to M/s. Kanga & Co., a firm in which the Company’s Director, Shri Mansingh L. Bhakta, is a partner. There were no other pecuniary relationships or transactions of Non-Executive Directors vis-à-vis the
Company. The Company has not granted any stock option to any of its Non-Executive Directors.

Subsidiary Companies’ Monitoring Framework
All subsidiary companies are Board managed with their
Boards having the rights and obligations to manage such companies in the best interest of their stakeholders. The
Company does not have any material unlisted subsidiary, and hence, is not required to nominate an Independent
Director of the Company on the Board of any subsidiary.
The Company monitors performance of subsidiary companies, inter alia, by the following means:

Year

Date

Time

2013-14 June 18, 11.00
2014
a.m.

Special Resolution Passed
1) Payment of remuneration to Non-executive
Directors not exceeding in aggregate one percent of the net profits of the
Company
2) Offer or invitation for subscription of Non –
Convertible Debentures on private placement basis
3) Adoption of new Articles of Association of the
Company

2012-13 June 06, 11.00
2013
a.m.

1) Payment of commission to
Non-executive Directors

2011-12 June 07, 11.00
2012
a.m.

No Special Resolution was passed in the meeting

Special Resolution(s) passed through Postal Ballot
During the year, the members of the Company have approved amendment in the Objects Clause of the
Memorandum of Association of the Company by passing a Special Resolution through postal ballot effective March
28, 2015.
The Board had appointed Shri Ketan Vora, a Practicing
Chartered Accountant, Partner, Deloitte Haskins & Sells
LLP, Mumbai as a Scrutinizer to conduct the postal ballot voting process in a fair and transparent manner.

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Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
The details of the voting pattern in respect of Special Resolution passed for alteration of the Object Clause of the
Memorandum of Association was as under:

Promoter/Public

No. of shares held (1)

No. of votes polled (2)

Promoter and Promoter Group 146 39 61 977 146 39 61 977
Public – Institutional holders 101 07 63 660 76 95 12 551
Public – Others
58 27 66 047
1 72 42 864

TOTAL

305 74 91 684 225 07 17 392

There is no immediate proposal for passing any resolution through Postal Ballot. None of the businesses proposed to be transacted at the ensuing Annual General Meeting require passing a resolution through Postal Ballot.
Disclosures on materially significant related party transactions, i.e. the Company’s transactions that are of material nature, with its Promoters, Directors and the management, their relatives or subsidiaries, among others that may have potential conflict with the Company’s interests at large
During the period under review, the Company had not entered into any material transaction with any of its related parties.
None of the transactions with any of related parties were in conflict with the Company’s interest. Attention of members is drawn to the disclosure of transactions with related parties set out in Note No. 32 of Standalone
Financial Statements, forming part of the Annual Report.

(3)=[(2)/
(4)
(1)]* 100
100.00 146 39 61 977
76.13 76 73 42 613
2.96
1 70 77 566

0
21 69 938
1 65 298

% of votes in favour on votes polled (6)=[(4)/
(2)]* 100
65.04
34.09
0.76

73.61 224 83 82 156

23 35 236

99.90

% of votes polled on outstanding shares

No. of votes – in favour

No. of votes – against (5)

% of votes against on votes polled (7)=[(5)/
(2)]* 100
0.00
0.10
0.01
0.10

with Stock Exchanges in respect of warrants issued in
April, 2007. The Adjudicating Officer of SEBI imposed an aggregate monetary penalty of ` 13 crore. The Company has challenged this order before the Hon’ble Securities
Appellate Tribunal.

Whistle Blower policy
The Company promotes ethical behaviour in all its business activities and has put in place a mechanism for reporting illegal or unethical behaviour. The Company has a Vigil mechanism and Whistle blower policy under which the employees are free to report violations of applicable laws and regulations and the Code of Conduct.
The reportable matters may be disclosed to the Ethics and Compliance Task Force which operates under the supervision of the Audit Committee. Employees may also report to the Chairman of the Audit Committee. During the year under review, no employee was denied access to the Audit Committee.

The Company’s major related party transactions are generally with its subsidiaries and associates. The related party transactions are entered into based on considerations of various business exigencies, such as synergy in operations, sectoral specialization and the Company’s long-term strategy for sectoral investments, optimization of market share, profitability, legal requirements, liquidity and capital resources of subsidiaries and associates.

Means of Communication

All related party transactions are negotiated on an armslength basis, and are intended to further the Company’s interests. Presentations to institutional investors / analysts:
Detailed presentations are made to institutional investors and financial analysts on the Company’s unaudited quarterly as well as audited annual financial results.
These presentations are also uploaded on the Company’s website (www.ril.com).

Details of non-compliance by the Company, penalties, strictures imposed on the Company by Stock
Exchange or SEBI, or any statutory authority, on any matter related to capital markets, during the last three years
During the last three years, SEBI had issued a Show
Cause Notice in connection with the alleged nondisclosure of the diluted Earnings Per Share in the filing

Quarterly results: The Company’s quarterly results are published in ‘Financial Express’/‘Indian Express’ and
‘Navshakti’, and are displayed on its website (www.ril.com).
News releases, presentations, among others: Official news releases and official media releases are sent to Stock
Exchanges.

Website: The Company’s website (www.ril.com) contains a separate dedicated section ‘Investor Relations’ where shareholders’ information is available. The Company’s
Annual Report is also available in a user-friendly and downloadable form.

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Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Corporate Governance Report

Annual Report: The Annual Report containing, inter alia, Audited Financial Statement, Consolidated Financial
Statements, Directors’ Report, Auditors’ Report and other important information is circulated to members and others entitled thereto. The Management’s Discussion and
Analysis (MD&A) Report forms part of the Annual Report and is displayed on the Company’s website (www.ril.com).

Shareholders’ Feedback Survey: The Company had sent feedback forms seeking shareholders’ views on various matters relating to investor services and Annual Report
2013-14. The feedback received from shareholders was placed before the Stakeholders’ Relationship Committee.

Chairman’s Communiqué: The printed copy of the
Chairman’s speech is distributed to shareholders at
Annual General Meetings. The document is also placed on the Company’s website (www.ril.com) and sent to Stock
Exchanges.

Company Registration Details
The Company is registered in the State of Maharashtra,
India. The Corporate Identification Number (CIN) allotted to the Company by the Ministry of Corporate Affairs (MCA) is L17110MH1973PLC019786.

Reminder to Investors: Reminders for unclaimed shares, unpaid dividend/unpaid interest or redemption amount on debentures are sent to shareholders/debenture holders as per records every year.

Annual General Meeting
(Day, Date, Time and Venue)
Friday, June 12, 2015 at 11.00 a.m.
Birla Matushri Sabhagar, 19, New Marine Lines,
Mumbai 400 020

Corporate Filing and Dissemination System (CFDS):
The CFDS portal jointly owned, managed and maintained by BSE and NSE is a single source to view information filed by listed companies. All disclosures and communications to BSE and NSE are filed electronically through the CFDS portal. In particular, the Company informs BSE and NSE all price sensitive matters or such other matters which in its opinion are material and of relevance to the members.
NSE Electronic Application Processing System
(NEAPS): The NEAPS is a web-based application designed by NSE for corporates. All periodical compliance filings like shareholding pattern, corporate governance report, media releases, among others are filed electronically on
NEAPS.
BSE Corporate Compliance & Listing Centre (the ’Listing
Centre‘): BSE’s Listing Centre is a web-based application designed for corporates. All periodical compliance filings like shareholding pattern, corporate governance report, media releases, among others are also filed electronically on the Listing Centre.
SEBI Complaints Redress System (SCORES): The investor complaints are processed in a centralised web-based complaints redress system. The salient features of this system are: Centralised database of all complaints, online upload of Action Taken Reports (ATRs) by concerned companies and online viewing by investors of actions taken on the complaint and its current status.
Designated Exclusive email-id: The Company has designated the following email-ids exclusively for investor servicing: For queries on Annual Report: investor_relations@ril.com For queries in respect of shares in physical mode: rilinvestor@karvy.com General Shareholder Information

Financial Year
April 1 to March 31
Financial Calendar (tentative)
Results for the quarter ending
June 30, 2015 - Fourth week of July, 2015
September 30, 2015 - Third week of October, 2015
December 31, 2015 - Fourth week of January, 2016
March 31, 2016 - Fourth week of April, 2016
Annual General Meeting - June, 2016
Date of Book Closure
Tuesday, May 12, 2015 to Friday, May 15, 2015 (both days inclusive) for payment of dividend.
Dividend Payment Date
Credit/dispatch of dividend warrants between June 13,
2015 and June 19, 2015.
Listing on Stock Exchanges
Equity Shares
BSE Limited (BSE)
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai 400 001
Scrip Code 500325
National Stock Exchange of India Limited (NSE)
‘‘Exchange Plaza”,
Bandra-Kurla Complex,
Bandra (E), Mumbai 400 051
Trading Symbol - RELIANCE EQ
ISIN : INE002A01018

139

140

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
Global Depository Receipts (GDRs)
Listing
Luxembourg Stock Exchange, 11, Avenue de la PorteNeuve, L – 2227, Luxembourg.
Also traded on International Order Book System (London
Stock Exchange) and PORTAL System (NASD, USA)
Trading Symbol RILYP, CUSIP 759470107
Overseas Depository
The Bank of New York Mellon Corporation 101, Barclay
Street, New York, NY 10286 USA
Domestic Custodian
ICICI Bank Limited, Empire Complex, E7/F7, 1st Floor, 414,
Senapati Bapat Marg, Lower Parel, Mumbai 400 013
Debt Securities
Listing
The Wholesale Debt Market (WDM) Segment of BSE and
NSE

Debenture Trustees
Axis Bank Limited
Axis House, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli,
Mumbai 400 025
Axis Trustee Services Limited
Axis House, 2nd Floor, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai 400 025
Payment of Listing Fees
Annual listing fee for the year 2015-16 has been paid by the Company to BSE and NSE. Annual maintenance and listing agency fee for the calendar year 2015 has been paid by the Company to the Luxembourg Stock Exchange.
Payment of Depository Fees
Annual Custody/Issuer fee for the year 2015-16 will be paid by the Company to NSDL and CDSL on receipt of the invoices. Stock Market Price Data
National Stock Exchange (NSE)

BSE Limited (BSE)

Month
High Price (`)

Low Price (`)

Volume (No.)

High Price (`)

Low Price (`)

Volume (No.)

April 2014

988.75

929.10

5 91 45 995

988.90

930.00

65 60 890

May 2014

1 145.25

925.00

9 49 72 283

1 142.50

925.00

1 14 34 861

June 2014

1 133.00

1 000.00

7 44 29 949

1 132.80

1 000.10

82 33 114

July 2014

1 043.30

958.50

7 29 67 161

1 042.50

959.00

77 72 886

August 2014

1 023.00

971.00

5 09 82 514

1 023.25

971.60

52 73 893

September 2014

1 041.30

917.30

6 95 39 618

1 049.90

918.10

64 09 846

October 2014

1 003.70

911.55

6 30 70 521

1 002.70

912.75

72 73 760

November 2014

1 017.35

963.40

4 87 42 867

1 016.20

964.15

47 31 270

December 2014

991.95

859.70

6 73 55 504

991.70

859.95

91 55 808

January 2015

934.50

831.20

7 79 91 514

934.25

831.10

98 69 437

February 2015

943.80

836.60

6 15 40 933

943.10

837.10

88 12 618

March 2015

909.65

796.45

7 01 41 354

909.00

796.75

81 33 925

[Source: This information is compiled from the data available from the websites of BSE and NSE]

Share Price Performance in comparison to broad based indices – BSE Sensex and NSE Nifty as on
March 31, 2015
BSE (% Change)
RIL
FY 2014-15

Sensex

-11.27% 24.89%
48.43%

NSE (% Change)
RIL

Nifty

-11.25% 26.65%

2 years

6.59%

6.87%

49.42%

3 years

10.22% 60.64%

10.44% 60.34%

5 years

-23.26% 59.50%

-23.11% 61.76%

Registrars and Transfer Agents
Karvy Computershare Private Limited
Karvy Selenium Tower B, 6th Floor
Plot 31-32, Gachibowli, Financial District.
Nanakramguda, Hyderabad – 500 032
Tel: +91-40-67161700
Toll Free No.: 1-800-4258-998; Fax: +91-40-23114087 e-mail: rilinvestor@karvy.com
Website: www.karvy.com
(Address changed w.e.f. April 14, 2015)
List of Investor Service Centres of Karvy Computershare
Private Limited is available on the Company’s website www.ril.com. 02-45

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Management Review

Governance

Financial Statements

Shareholder Information

141

Corporate Governance Report

Share Transfer System
Share transfers are processed and share certificates duly endorsed are delivered within a period of seven days from the date of receipt, subject to documents being valid and complete in all respects. The Board has delegated the authority for approving transfer, transmission, etc. of the Company’s securities to the Managing Director and/or Company Secretary.
A summary of transfer/transmission of securities of the Company so approved by the Managing Director/Company
Secretary is placed at every Board meeting / Stakeholders’ Relationship Committee. The Company obtains from a
Company Secretary in Practice half-yearly certificate of compliance with the share transfer formalities as required under
Clause 47(c) of the Listing Agreement and files a copy of the said certificate with Stock Exchanges.

Distribution of Shareholding as on March 31, 2015
Category
Category of shareholder
Code

Number of shareholders 45.24

0

0

0.00

63

146 39 61 977

45.24

2 025

101 53 53 383

31.38

Indian

(2)

146 39 61 977

Shareholding of Promoter and Promoter Group

(1)

As a percentage of
(A+B+C)

63*

(A)

Total number of shares Foreign
Total Shareholding of Promoter and Promoter Group

(B)

Public Shareholding

(1)

Institutions

(2)

Non-institutions

27 88 753

65 19 69 215

20.15

Total Public Shareholding

27 90 778

166 73 22 598

51.53

(C)

Shares held by Custodians and against which
Depository Receipts have been issued

(1)

Promoter and Promoter Group

0

0

0.00

(2)

Public

1

10 44 04 190

3.23

27 90 842

323 56 88 765

100.00

TOTAL (A) + (B) + (C)

* As per disclosure under regulation 30(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, furnished by the promoters.

Shareholding Pattern by Size as on March 31, 2015
Category-wise shareholding

Category (Shares)

(%)
3.23

Up to 500
Promoter

20.15

2014-15

45.24

Institutions
Non-institutions

31.38

GDR Holders

Holders

Shares

% of Total
Shares

26 70 447

18 25 13 865

5.64

501 – 1000

70 803

4 99 98 921

1.55

1001 – 5000

43 811

8 23 39 556

2.54

5001 – 10000

3 053

2 12 39 477

0.66

10001 – 20000

1 087

1 51 73 387

0.47

Above 20000

TOTAL

1 641 288 44 23 559

89.14

27 90 842 323 56 88 765

100.00

142

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
Build-up of Equity Share Capital
Particulars
Subscribers to Memorandum
Shareholders of Reliance Textile Industries Limited
(Merged with the Company)
Conversion of Loan
Rights Issue – I
Bonus Issue – I
Debenture Series I Conversion
Consolidation of Fractional Coupon Shares
Conversion of Loan
Conversion of Loan
Rights Issue II
Debenture Series II Conversion
Debenture Series I Conversion Phase II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company)
Rights Issue II NRI
Debenture Series III Conversion
Rights Issue II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) II
Bonus Issue- II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) III
Debenture Series IV Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) IV
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) V
Debenture Series I Conversion
Debenture Series II Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VI
Consolidation of Fractional Coupon Shares
Debenture Series E Conversion
Debenture Series III Conversion
Debenture Series IV Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VII
Consolidation of Fractional Coupon Shares
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VIII
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) IX
Debenture Series G Conversion
Rights Issue III
Debenture Series G Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) X
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XI

Allotment Date

No. of Shares

October 19, 1975

1 100

May 9, 1977

59 50 000

September 28, 1979
December 31,1979
September 19, 1980
December 31, 1980
May 15,1981
June 23, 1981
September 22, 1981
October 6, 1981
December 31, 1981
December 31, 1981

9 40 000
6 47 832
45 23 359
8 40 575
24 673
2 43 200
1 40 800
23 80 518
8 42 529
27 168

April 12, 1982

81 059

June 15, 1982
August 31, 1982
September 9, 1982

774
19 20 000
41

December 29, 1982

1 942

September 30, 1983

1 11 39 564

September 30, 1983

371

September 30, 1983

64 00 000

April 5, 1984

617

June 20, 1984

50

October 1, 1984
December 31, 1984

97 66 783
2 16 571

January 31, 1985

91

April 30, 1985
April 30, 1985
July 5, 1985
December 17, 1985

45 005
53 33 333
52 835
42 871

December 31, 1985

106

December 31, 1985

610

November 15, 1986

40 284

April 1, 1987

169

August 1, 1987
February 4, 1988
February 4, 1988

6 60 30 100
3 15 71 695
29 35 380

June 2, 1988

25

October 31, 1988

10

02-45

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Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

143

Corporate Governance Report

Particulars
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XII
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XIII
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XIV
Euro Issue GDR-I
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company)
Shareholders of Reliance Petrochemicals Limited
(Merged with the Company)
Loan Conversion
Debenture Series H Conversion
Warrant Conversion (Debenture Series F)
Euro Issue GDR II
Loan Conversion
Warrant Conversion (Debenture Series J)
Private Placement of Shares
Conversion of Reliance Petrochemicals Limited Debentures
Shareholders of Reliance Polypropylene Limited and Reliance
Polyethylene Limited (Merged with the Company)
Warrants Conversion
Conversion of 3.5% ECB Due 1999 I
Conversion of 3.5% ECB Due 1999 II
Conversion of 3.5% ECB Due 1999 III
Conversion of 3.5% ECB Due 1999 IV
Conversion of 3.5% ECB Due 1999 V
Conversion of 3.5% ECB Due 1999 VI
Bonus Issue III
Conversion of 3.5% ECB Due 1999 VII
Conversion of 3.5% ECB Due 1999 VIII
Conversion of Warrants
Shareholders of Reliance Petroleum Limited
(Merged with the Company)
Shareholders of Indian Petrochemicals Corporation Limited
(Merged with the Company)
Exercise of Warrants
ESOS – Allotment
Shareholders of Reliance Petroleum Limited
(Merged with the Company)
Bonus Issue IV
ESOS – Allotment
ESOS – Allotment
ESOS – Allotment
ESOS – Allotment
ESOS – Allotment
ESOS – Allotment
Less: Shares bought back and extinguished on January 24, 2005
Less: Shares bought back and extinguished from February 08, 2012 to January 22, 2013

TOTAL EQUITY AS ON MARCH 31, 2015

Allotment Date

No. of Shares

November 29, 1990

322

May 22, 1991

46

October 10, 1991

25

June 3, 1992

1 84 00 000
4 060

December 4, 1992

7 49 42 763

July 7, 1993
August 26, 1993
August 26, 1993
February 23, 1994
March 1, 1994
August 3, 1994
October 21, 1994
December 22, 1994

3 16 667
3 64 60 000
1 03 16 092
2 55 32 000
18 38 950
87 40 000
2 45 45 450
75 472

March 16, 1995

9 95 75 915

March 10, 1995
May 24, 1997
July 11, 1997
July 22, 1997
September 13, 1997
October 22, 1997
November 4, 1997
December 20, 1997
December 4, 1997
September 27, 1999
January 12, 2000

74 80 000
544
13 31 042
6 05 068
18 64 766
18 15 755
1 03 475
46 60 90 452
15 68 499
7 624
12 00 00 000

October 23, 2002

34 26 20 509

October 13, 2007

6 01 40 560

October 3, 2008
Various dates in 2008-09

12 00 00 000
1 49 632

September 30, 2009

6 92 52 623

November 28, 2009
Various dates in 2009-10
Various dates in 2010-11
Various dates in 2011-12
February 22, 2013
Various dates in 2013-14
Various dates in 2014-15

1 62 67 93 078
5 30 426
29 99 648
13 48 763
1 86 891
32 38 476
37 86 907
-28 69 495
-4 62 46 280
323 56 88 765

144

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
Corporate Benefits to Investors
Dividend Declared for the last 10 Years
Financial Year

Dividend Declaration

Dividend per Share*

97.81% of Company’s paid-up Equity Share Capital has been dematerialised up to March 31, 2015 (97.70% up to
March 31, 2014). Trading in Equity Shares of the Company is permitted only in dematerialised form.

2004-05

August 03, 2005

7.5

Liquidity

2005-06
2006-07
2007-08
2008-09

June 27, 2006
March 10, 2007
June 12, 2008
October 07, 2009
June 18, 2010
(post bonus issue 1:1)
June 03, 2011
June 07, 2012
June 06, 2013
June 18, 2014

10
11
13
13

The Company’s Equity Shares are among the most liquid and actively traded shares on the Indian Stock Exchanges.
RIL shares consistently rank among the top few frequently traded shares, both in terms of the number of shares traded, as well as value.

7

Relevant data for the average daily turnover for the financial year 2014-15 is given below:

2009-10
2010-11
2011-12
2012-13
2013-14

8
8.5
9
9.5

* Share of paid-up value of `10 per share.
Note: Dividend of `10 per share, recommended by Directors on April 17, 2015, is subject to declaration by shareholders at the ensuing Annual General Meeting.

BONUS ISSUES OF FULLY PAID-UP EQUITY
SHARES
Financial Year

Ratio

1980-81

3:5

1983-84
1997-98
2009-10

6:10
1:1
1:1

Shares issued on Demerger
Consequent upon the demerger of the coal based, gas based, financial services and telecommunications undertakings/businesses of the Company in December,
2005, the shareholders of the Company were allotted equity shares of the four companies, namely, Reliance
Energy Ventures Limited (REVL), Reliance Natural Resources
Limited (RNRL), Reliance Capital Ventures Limited (RCVL) and Reliance Communication Ventures Limited (RCoVL) in the ratio of one equity share of each of the companies for every equity share held by shareholders except specified shareholders, in Reliance Industries Limited, as on the record date fixed for the purpose.
Accordingly, 122,31,30,422 equity shares each of REVL,
RNRL, RCVL and RCoVL were allotted on January 27, 2006.

Dematerialisation of Shares
Mode of Holding

NSDL

% age
95.96

CDSL
Physical

1.85
2.19

TOTAL

100.00

Shares (nos.)
Value (in ` crore)

BSE
3,85,442
36.89

NSE
33,36,956
321.61

Total
37,22,398
358.50

[Source: This information is compiled from the data available from the websites of BSE and NSE]

Outstanding GDRs / Warrants and Convertible
Bonds, Conversion Date and likely impact on equity GDRs: Outstanding GDRs as on March 31, 2015 represent
10 44 04 190 equity shares constituting 3.23% of Company’s paid-up Equity Share Capital. Each GDR represents two underlying equity shares in the Company. GDR is not a specific time-bound instrument and can be surrendered at any time and converted into the underlying equity shares in the Company. The shares so released in favour of the investors upon surrender of GDRs can either be held by investors concerned in their name or sold off in the
Indian secondary markets for cash. To the extent of shares so sold in Indian markets, GDRs can be reissued under the available head room.

RIL GDR Programme - Important Information
RIL GDRs are listed at the Luxembourg Stock Exchange.
GDRs are traded on the International Order Book (IOB) of
London Stock Exchange. GDRs are also traded amongst
Qualified Institutional Investors in the Portal System of
NASD, USA.
RIL GDRs are exempted securities under US Securities Law.
RIL GDR program has been established under Rule 144A and Regulation S of the US Securities Act, 1933. Reporting is done under the exempted route of Rule 12g3-2(b) under the US Securities Exchange Act, 1934.
The Bank of New York Mellon is the Depository and ICICI
Bank Limited is the Custodian of all the Equity Shares underlying the GDRs issued by the Company.

Employee Stock Options
The information on Options granted by the Company during the financial year 2014-15 and other particulars with regard to Employees’ Stock Options are set out under
Annexure IV to the Directors’ Report

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Management Review

Governance

Financial Statements

Shareholder Information

Corporate Governance Report

PLANT LOCATIONS

Oil & Gas

Refining & Marketing

KG D6 Onshore Terminal
Village Gadimoga, Tallarevu Mandal,
East Godavari District Gadimoga – 533 463,
Andhra Pradesh, India

Jamnagar
Village Meghpar/Padana, Taluka Lalpur,
Jamnagar - 361 280, Gujarat, India
Jamnagar SEZ Unit
Village Meghpar/Padana, Taluka Lalpur,
Jamnagar - 361 280, Gujarat, India
Petrochemicals
Allahabad Manufacturing Division
A/10-A/27, UPSIDC Industrial Area,
P. O.T.S.L. Allahabad - 211 010,
Uttar Pradesh, India
Barabanki Manufacturing Division
Dewa Road, P.O. Somaiya Nagar,
Barabanki - 225 123, Uttar Pradesh, India
Dahej Manufacturing Division
P. O. Dahej- 392 130,
Taluka: Vagra, District Bharuch, Gujarat, India
Hazira Manufacturing Division
Village Mora, P.O. Bhatha,
Surat-Hazira Road, Surat - 394 510, Gujarat, India
Hoshiarpur Manufacturing Division
Dharamshala Road, V.P.O. Chohal,
District Hoshiarpur - 146 024, Punjab, India
Nagothane Manufacturing Division
P. O. Petrochemicals Township,
Nagothane - 402 125, Roha Taluka,
District Raigad, Maharashtra, India
Nagpur Manufacturing Division
Village: Dahali, Mouda ,Ramtek Road,
Tehsil Mouda – 441 104, District Nagpur,
Maharashtra, India
Patalganga Manufacturing Division
B-1 to B-5 & A3, MIDC Industrial Area, P.O. Rasayani,
Patalganga – 410 220, District Raigad,
Maharashtra, India
Silvassa Manufacturing Division
342, Kharadpada, P.O. Naroli – 396 235,
Union Territory of Dadra and Nagar Haveli, India
Vadodara Manufacturing Division
P. O. Petrochemicals, Vadodara - 391 346,
Gujarat, India

Oil & Gas Blocks
Panna Mukta, Mid and South Tapti, NEC-OSN-97/2,
KG-DWN-98/3, CY-DWN-2001/2, CB-ONN-2003/1, and
GS-OSN-2000/1
CBM Blocks
SP (West) – CBM – 2001/1, SP (East) – CBM – 2001/1
Coal Bed Methane Project (CBM)
Village & PO: Lalpur, Tehsil: Burhar,
District Shahdol, Madhya Pradesh - 484 110, India

Textiles
Naroda Manufacturing Division
103/106, Naroda Industrial Estate, Naroda,
Ahmedabad - 382 330, Gujarat, India
Address for Correspondence
Investor Correspondence
For Shares/Debentures held in Physical form
Karvy Computershare Private Limited
Karvy Selenium Tower B, 6th Floor
Plot 31-32, Gachibowli, Financial District.
Nanakramguda, Hyderabad – 500 032
Tel: +91-40-67161700
Toll Free No.: 1-800-4258-998; Fax: +91-40-23114087 e-mail: rilinvestor@karvy.com
Website: www.karvy.com
(Address changed w.e.f. April 14, 2015)
For Shares/Debentures held in Demat form
Investors’ concerned Depository Participant(s) and /or
Karvy Computershare Private Limited.
Any query on the Annual Report
Shri A. Anjeneyan
Senior Vice President, Corporate Secretarial
Reliance Industries Limited,
3rd Floor, Maker Chambers IV, 222, Nariman Point,
Mumbai 400 021. e-mail: investor_relations@ril.com
Transfer of unpaid/unclaimed amounts to Investor
Education and Protection Fund
During the year under review, the Company has credited
` 9.89 crore to the Investor Education and Protection
Fund (IEPF) pursuant to Section 205C of the Companies
Act, 1956 read with the Investor Education and Protection
Fund (Awareness and Protection of Investors) Rules, 2001.
The cumulative amount transferred to IEPF up to March
31, 2015 is ` 118.33 crore.

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Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
Pursuant to the provisions of Investor Education and
Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies)
Rules, 2012, the Company has uploaded the details of unpaid and unclaimed amounts lying with the Company as on June 18, 2014 (date of last Annual General Meeting) on the Company’s website (www.ril.com) and on the website of the Ministry of Corporate Affairs.

Equity Shares in the Suspense Account
In terms of Clause 5A(I) and Clause 5A(II) of the Listing
Agreement, the Company reports the following details in respect of equity shares lying in the suspense accounts which were issued in demat form and physical form, respectively: Demat

Physical

Number of
Shareholders

Number of equity shares

Number of
Shareholders
(phase wise transfers) Aggregate Number of shareholders and the outstanding shares in the suspense account lying as on April 1, 2014

96

1 308

1 62 905

62 41 611

Number of shareholders who approached the
Company for transfer of shares and shares transferred from suspense account during the year

0

0

1 625

1 04 438

Number of shareholders and aggregate number of shares transferred to the Unclaimed Suspense
Account during the year

0

0

19

1 741

Aggregate Number of shareholders and the outstanding shares in the suspense account lying as on March 31, 2015

96

1308

1 61 299

61 38 914

Particulars

The voting rights on the shares in the suspense accounts as on March 31, 2015 shall remain frozen till the rightful owners of such shares claim the shares.

COMPLIANCE CERTIFICATE OF THE AUDITORS
Certificate from the Company’s Auditors, M/s. Chaturvedi
& Shah, Deloitte Haskins & Sells LLP and M/s. Rajendra &
Co., confirming compliance with conditions of Corporate
Governance as stipulated under Clause 49 of the Listing
Agreement, is attached to this Report.

ADOPTION OF MANDATORY AND NONMANDATORY REQUIREMENTS OF CLAUSE 49
The Company has complied with all mandatory requirements of Clause 49 of the Listing Agreement.
The Company has adopted following non-mandatory requirements of Clause 49 of the Listing Agreement:

Number of equity shares

CEO AND CFO CERTIFICATION
The Chairman and Managing Director and the Chief
Financial Officer of the Company give annual certification on financial reporting and internal controls to the Board in terms of Clause 49 of the Listing Agreement. The Chairman and Managing Director and the Chief Financial Officer also give quarterly certification on financial results while placing the financial results before the Board in terms of
Clause 41 of the Listing Agreement. The annual certificate given by the Chairman and Managing Director and the
Chief Financial Officer is published in this Report.

Certificate on Compliance with Code of Conduct
I hereby confirm that the Company has obtained from all the members of the Board and Management Personnel, affirmation that they have complied with the Code of
Conduct for the financial year 2014-15.

Communication to Shareholders
Half-yearly reports covering financial results were sent to members at their registered addresses.

Audit Qualification
The Company is in the regime of unqualified financial statements. Reporting of Internal Auditor
The Internal Auditor directly reports to the Audit
Committee

(Mukesh D. Ambani)
Chairman and Managing Director

Mumbai
April 17, 2015

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CEO / CFO CERTIFICATE UNDER CLAUSE 49 (IX)
To,
The Board of Directors
Reliance Industries Limited
1. We have reviewed financial statements and the cash flow statement of Reliance Industries Limited for the year ended 31st March, 2015 and to the best of our knowledge and belief:
(i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
(ii) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.
2. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the
Company’s Code of Conduct.
3. We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of Company’s internal control systems pertaining to financial reporting. We have not come across any reportable deficiencies in the design or operation of such internal controls. 4. We have indicated to the Auditors and the Audit
Committee:
(i) that there are no significant changes in internal control over financial reporting during the year;
(ii) that there are no significant changes in accounting policies during the year; and
(iii) that there are no instances of significant fraud of which we have become aware.
(Alok Agarwal)
Chief Financial
Officer

(Srikanth Venkatachari)
Joint Chief Financial
Officer

(Mukesh D. Ambani)
Chairman and Managing
Director

Mumbai
April 17, 2015

AUDITORS’ CERTIFICATE ON CORPORATE
GOVERNANCE

implementation thereof adopted by the Company for ensuring compliance with the conditions of the Corporate
Governance as stipulated in the said Clause. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and based on the representations made by the Directors and the
Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the above-mentioned Listing Agreement.
We state that such compliance is neither an assurance as to future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.
For Chaturvedi & Shah
Chartered Accountants
(Registration No. 101720W)

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Registration No. 117366W/W-100018)

For Rajendra & Co.
Chartered Accountants
(Registration No. 108355W)

(D. Chaturvedi)
Partner
Membership No.: 5611

(A.B. Jani)
Partner
Membership No.: 46488

(A.R. Shah)
PartnerMembership No.: 47166

Mumbai
April 17, 2015

DIRECTORS’ PROFILE
Shri Mukesh D. Ambani (DIN 00001695) is a Chemical
Engineer from Institute of Chemical Technology, Mumbai
(earlier University Department of Chemical Technology,
University of Mumbai). He has pursued MBA from Stanford
University, USA.
Shri Mukesh D. Ambani has joined Reliance in 1981.
He initiated Reliance’s backward integration journey from textiles into polyester fibres and further into petrochemicals, petroleum refining and going upstream into oil and gas exploration and production. He created several new world class manufacturing facilities involving diverse technologies that have raised Reliance’s petrochemicals manufacturing capacities from less than a million tonnes to about fourteen million tonnes per year. He is envisaging almost doubling these capacities to twenty seven million tonnes per annum within a short span. We have examined the compliance of conditions of
Corporate Governance by Reliance Industries Limited, for the year ended on 31st March 2015, as stipulated in
Clause 49 of the Listing Agreement of the said Company with stock exchanges.

Shri Mukesh D. Ambani led the creation of the world’s largest grassroots petroleum refinery at Jamnagar, India, with a capacity of 660,000 barrels per day (33 million tonnes per year) integrated with petrochemicals, power generation, port and related infrastructure. Further, he steered the setting up of another 580,000 barrels per day refinery next to the existing one in Jamnagar. With an aggregate refining capacity of 1.24 million barrels of oil per day at any single location in the world has transformed
“Jamnagar” as the ‘Refining Hub of the World’.

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination has been limited to a review of the procedures and

In September 2008, when the first drop of crude oil flowed from the Krishna-Godavari basin, Shri Mukesh D. Ambani’s vision of energy security for India was being realized.

To the Members,
Reliance Industries Limited

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Annual Report 2014-15

CORPORATE GOVERNANCE REPORT (CONTINUED)
Shri Mukesh D. Ambani is steering Reliance’s development of infrastructure facilities and implementation of a panIndia organized retail network spanning multiple formats and supply chain infrastructure. Today, Reliance Retail is the largest retail player in the Country.
Shri Mukesh D. Ambani is also setting up one of the most complex 4G broadband wireless services in the world offering end to end solutions that address the entire value chain across various digital services in key domains of national interest such as Education, Healthcare, Security,
Financial Services, Government-Citizen interfaces and
Entertainment.
Shri Mukesh D. Ambani’s achievements have been acknowledged at several national and international levels. Over the years, some of the awards and recognition bestowed on him are:
Conferred an honorary Doctor of Science by Institute of Chemical Technology (ICT), Mumbai in February
2015
In 2014, he continues to be featured in the list of the ‘Most Powerful People in the World’ by Forbes magazine NDTV honored him as one of the 25 Greatest Global
Living Legends
Awarded as ‘Global Challenger’ by Boston Consulting
Group in 2013
In 2013, he was conferred ‘Entrepreneur of the
Decade’ by All India Management Association
In 2010, awarded the Dean’s Medal by University of
Pennsylvania Dean of the School of Engineering and
Applied Science for his leadership in the application of Engineering and Technology
In 2011, he was featured in the list of TIME 100 Most
Influential People in the World
In 2011, ranked the 5th best performing CEO in the
World by the Harvard Business Review in its ranking of the top 50 global CEOs
Shri Mukesh D. Ambani is a member of the Prime Minister’s
Council on Trade and Industry, Government of India. He is the Chairman of Board of Governors, Pandit Deendayal
Petroleum University, Gandhinagar.
Shri Mukesh D. Ambani is a Member of Millennium
Development Goals (MDG) Advocacy Group (MDG
Advocate) constituted by United Nations (UN), a Board member of the INTERPOL Foundation and a Member of
The Foundation Board of World Economic Forum.
Shri Mukesh D. Ambani is a member of the Indo-US CEOs
Forum, Chair of The British Asian Trust’s India Advisory
Council, International Advisory Council of The Brookings,
McKinsey & Company International Advisory Council,
Global Advisory Council of Bank of America, Member of
The Business Council and London School of Economics’
India Advisory Group.
Shri Mukesh D. Ambani is the Chairman of Reliance Jio
Infocomm Limited and Reliance Retail Ventures Limited

and a Director of Reliance Foundation and Reliance
Europe Limited.
At RIL, he is Chairman of the Finance Committee.
He is Promoter of the Company and holds 36,15,846 shares of the Company in his name as on March 31, 2015.
Shri Nikhil R. Meswani (DIN 00001620) is a Chemical
Engineer. He is the son of Shri Rasiklal Meswani, one of the
Founder Directors of the Company.
He joined Reliance in 1986 and since July 01, 1988 he is a
Whole-time Director designated as Executive Director on the Board of the Company.
He is primarily responsible for Petrochemicals Division and has contributed largely to Reliance to become a global leader in Petrochemicals. Earlier, he handled refinery business between 1997 and 2005. He was also responsible for integration of IPCL with Reliance businesses. In addition, he continues to shoulder several other corporate responsibilities such as Corporate Affairs and Group’s taxation policies. He also takes keen interest in IPL cricket franchise “Mumbai Indians”.
He was the President of Association of Synthetic Fibre
Industry and was also the youngest Chairman of Asian
Chemical Fibre Industries Federation. He is also a member of managing committee of Federation of Indian Export
Organisations set up by Ministry of Commerce.
He was named Young Global Leader by the World Economic
Forum in 2005 and continues to actively participate in the activities of the Forum.
He is also a member of the Young Presidents’ Organisation.
He was honoured by the Institute of Economic Studies,
Ministry of Commerce & Industry, the Textile Association
(India), Ministry of Textiles. He is also a distinguished
Alumnus of the University Institute of Chemical
Technology (UICT), Mumbai.
He is currently ranked fourth among Top 40 Global Power
Players in chemical industry as per ICIS – leading chemical industry magazine.
He is a member of the Corporate Social Responsibility and
Governance Committee, the Finance Committee and the
Stakeholders’ Relationship Committee of the Company.
He is a Director of Reliance Commercial Dealers Limited and Chairman of its Audit Committee and Nomination and Remuneration Committee.
He holds 4,18,374 shares of the Company in his name as on March 31, 2015.
Shri Hital R. Meswani (DIN 00001623) graduated with
Honours in the Management & Technology programme from the University of Pennsylvania, U.S.A. where he received a Bachelor of Science Degree in Chemical
Engineering from the School of Engineering and Applied
Sciences and a Bachelor of Science Degree in Economics from the Wharton Business School.

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He joined Reliance Industries Limited in 1990. He is on the
Board of the Company as Whole-time Director designated as Executive Director since August 04, 1995, with overall responsibility of the Petroleum Refining Business and all Manufacturing, Research & Technology and Project
Execution activities of the group.
He is a member of the Finance Committee, Stakeholders’
Relationship Committee, Risk Management Committee and Chairman of the Health, Safety and Environment
Committee of the Company.
He is a Director of Reliance Industrial Investments and
Holdings Limited and Reliance Commercial Dealers
Limited. He is a member of the Audit Committee and
Nomination and Remuneration Committee of Reliance
Commercial Dealers Limited.
He has been instrumental in the execution of several mega projects of the group including the Hazira Petrochemicals complex and the world’s largest Refinery complex at
Jamnagar.
He has been awarded an Honorary Fellowship by IChemE
(Institution of Chemical Engineers – the International
Professional body for Chemical, Biochemical and Process
Engineers) in recognition of his contribution to the process industries.
He is the recipient of The 2011 D. Robert Yarnall Award from The Engineering Alumni Society of the University of
Pennsylvania.
He was also conferred the Honorary CEPM-PMA Fellowship
Award for Project Management Excellence.
He holds 3,51,886 shares of the Company in his name as on March 31, 2015.
Shri P.M.S. Prasad (DIN 00012144) is a Whole-time
Director designated as Executive Director of the Company since August 21, 2009.
He has been with the Company for about 34 years. Over the years, he has held various senior positions in the Fibres,
Petrochemicals, Refining & Marketing and Exploration &
Production Businesses of the Company.
He holds Bachelor’s degrees in Science and Engineering.
He was awarded an honorary doctorate degree by the
University of Petroleum Engineering Studies, Dehradun in recognition of his outstanding contribution to the
Petroleum sector. He has been conferred the Energy
Executive of the Year 2008 award by Petroleum Economist in recognition of his leadership.
He is on the Board of Governors of the University of
Petroleum & Energy Studies, India.
He is a member of the Health, Safety and Environment
Committee and Risk Management Committee of the
Company.

Shri Pawan Kumar Kapil (DIN 02460200) has been appointed as a Whole-time Director designated as
Executive Director of the Company with effect from May
16, 2010.
He holds Bachelor’s degree in Chemical Engineering and has a rich experience of more than four decades in the
Petroleum Refining Industry.
He joined Reliance in 1996 and led the commissioning and start-up of the Jamnagar complex. He was associated with this project since conception right through Design,
Engineering, Construction and Commissioning. He also led the commissioning of the manufacturing operations in the Special Economic Zone (SEZ) at Jamnagar by Reliance.
He started his career in 1966 with the Indian Oil
Corporation. In the initial years he worked in various capacities in Operations, Technical Services and startup/ commissioning of various Refinery Process Units/ facilities in Barauni and Gujarat Refineries. Being a person with a strong penchant for analytical work and high technology skills, he was chosen to head the Central
Technical Services Department at the Corporate Office of Indian Oil Corporation. Here he did extensive work in
‘expansion of the existing refineries’, ‘energy optimisation’,
‘debottlenecking studies’ and ‘long range planning’.
Then he moved to Mathura Refinery as the head of
Refinery Operations. From Mathura he was picked up to become the Director (Technical) of Oil Coordination
Committee (OCC) - the ‘Think Tank’ of the Ministry of
Petroleum, the Government of India. He has travelled extensively and has been to USA, Russia, the Middle East,
Europe and the Far East in connection with refinery design, technology selection, crude sourcing, etc. Having served for 28 years in Indian Oil Corporation and OCC in various capacities, he rose to the position of Executive Director and spearheaded the setting up of Panipat Refinery for the Indian Oil Corporation.
He has been the Site President of the Jamnagar complex of the Company from 2001 to 2010. He is currently heading Group Manufacturing Services (GMS) since
2011 and working towards achieving excellence in the areas of HSE, Technology, Reliability and Operations of all
Manufacturing Sites covering Refineries, Petrochemicals and Polyester Plants of the Company. Under his able leadership, in 2005, the Jamnagar Refinery became the first Asian Refinery to be declared the ‘Best Refinery in the world’, at the ‘World Refining & Fuel Conference’ at
San Francisco, USA. Both Refineries have bagged many national and international awards for Excellence in
Safety performance, Energy conservation & Environment management, including the ‘Golden Peacock Global
Award for Sustainability for the year 2010’.

He is a Director of Reliance Commercial Dealers Limited and is a member of its Audit Committee and Nomination and Remuneration Committee.

In recognition of his excellent achievements, the
CHEMTECH Foundation had conferred on him the
“Outstanding Achievement Award for Oil Refining” in
2008. He is also a Member of the Research Council of the
Indian Institute of Petroleum, Dehradun.

He holds 1,36,666 shares of the Company in his name as on March 31, 2015.

He is a member of the Health, Safety and Environment
Committee of the Company.

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CORPORATE GOVERNANCE REPORT (CONTINUED)
He holds 8,000 shares of the Company in his name as on
March 31, 2015.
Shri Mansingh L. Bhakta (DIN 00001963) is senior partner of Messers Kanga & Company, a leading firm of Advocates and Solicitors in Mumbai. He has been in practice for over 60 years and has vast experience in legal field and particularly on matters relating to corporate laws, banking and taxation.
He is a legal advisor to leading foreign and Indian companies and banks. He has also been associated with a large number of Euro issues made by Indian companies.
He was the Chairman of the Taxation Law Standing
Committee of LAWASIA, an Association of Lawyers of Asia and Pacific, which has its headquarters in Australia.
He is a Director of the Indian Merchant’s Chamber,
Mumbai. He is the Lead Independent Director of the
Company. During his long legal career, he has served as an Independent Director of a large number of leading corporates including Larsen & Toubro Limited, SKF (India)
Limited, Kirloskar Oil Engines Limited, Arvind Limited and
Bennett Coleman & Company Limited.
He is a recipient of Rotary Centennial Service Award for
Professional Excellence from Rotary International. In its normal annual survey conducted by Asia Law Journal,
Hong Kong, a leading International law journal, he has been nominated as one of ‘the Leading Lawyers of Asia
2011’ for sixth consecutive years. Recently, ‘Trans Asian
Chamber of Commerce & Industry’ conferred on him the prestigious award of ‘The Pillar of Hindustaanee Society’ for the year 2014-15 in the field of ‘Ethical Law Practice’.
He holds 3,30,000 shares of the Company in his name as on March 31, 2015.
Shri Yogendra P. Trivedi (DIN 00001879) is practicing as senior advocate in Supreme Court. He was a member of the Rajya Sabha till April 02, 2014. He holds important positions in various fields’ viz. economics, profession, politics, commercial, education, medical field, sports and social service. He has received various Awards and medals for his contribution in various fields. He was a Director in Central Bank of India and Dena Bank, amongst many other reputed companies. He was the past President of the Indian Merchant’s Chamber and presently is a Member of the Managing Committee. He was on the Managing
Committee of ASSOCHAM and the International Chamber of Commerce. He was the Hon’ Counsel of Republic of
Ethiopia.
He is the Chairman of Sai Service Private Limited and
Trivedi Consultants Private Limited. He is the Director of The Supreme Industries Limited, Zodiac Clothing
Company Limited, New Consolidated Construction
Company Limited, Emami Limited and Federation of
Indian Automobile Association.
He is the Chairman of Indo African Chamber of Commerce.
He was the President of the Cricket Club of India. He was the past President of the Western India Automobile
Association. He is also Member of the Indian Merchant’s
Chamber, All India Association of Industries, W.I.A.A. Club,

B.C.A Club, Orient Club, Royal Bombay Yatch Club. He is also the Chairman of the Audit Committee, the Corporate
Social Responsibility and Governance Committee and the Stakeholders’ Relationship Committee and Member of the Human Resources, Nomination and Remuneration
Committee of the Company. He is a Member of the Audit
Committee of Zodiac Clothing Company Limited.
He has been conferred Honorary Doctorate (HonorisCausa) by Fakir Mohan University, Balasore, Odisha.
He holds 27,984 shares of the Company in his name as on
March 31, 2015.
Dr. Dharam Vir Kapur (DIN 00001982) is an honours
Graduate in Electrical Engineering with wide experience in Power, Capital Goods, Chemicals and Petrochemicals
Industries.
Dr. D.V. Kapur was the founding chairman-cum-managing director of the National Thermal Power Corporation
(NTPC). He had an illustrious career in the government sector with a successful track record of building vibrant organisations and successful project implementation. In a meeting of the executive directors of the World Bank group, Dr. Kapur was once described as ‘a model manager’.
Prior to NTPC, he also served at the Hirakud dam project,
Punjab state electricity board, the Indian Railways, and
Bharat Heavy Electricals Limited, in various positions.
He has been secretary to the government of India in the ministries of Power, Heavy Industry and Chemicals
& Petrochemicals. His significant contributions as
Secretary during 1980 to 1986 were introduction of new management practices and liberalization initiatives including authorship of “Broad Banding” and “Minimum
Economic Sizes” in industrial licensing. Dr. Kapur was also member of various government committees including
Arjun Sengupta Committee to Review Policy for Public
Enterprises. Reports on “Utilization and Conservation of Energy” and “Perspective Planning of Petrochemical
Industry” are still remembered as bibles of sorts for path breaking recommendations made under his chairmanship.
He was associated with a number of national institutions, including Indian Institute of Technology-Bombay as chairman of its board of governors for over ten years,
National Productivity Council as its chairman, and as member of the board of governors of the Administrative
Staff College of India and Indian Institute of ManagementLucknow. Jawaharlal Nehru Technological University conferred on him the degree of D.Sc. He is also the recipient of lifetime achievement awards and meritorious services awards from a number of prestigious organisations associated with energy and project management.
He is the Chairman (Emeritus) of Jacobs H&G (P) Limited.
In addition to Reliance Industries Limited, Dr. Kapur is also a Director on the Boards of Honda Siel Power Products
Limited, DLF Limited and other private limited companies.
He has also been an independent director on the Board of Tata Chemicals Limited, Larsen and Toubro Limited and
Ashok Leyland Limited. He was also founding Chairman of Reliance Power Limited. In addition to this, he has also chaired the boards of subsidiaries of multinational

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corporations, Jacobs Engineering Consultants (USA) and
GKN plc (UK). He is a member of the Human Resources,
Nomination and Remuneration Committee, the Corporate
Social Responsibility and Governance Committee and the Health, Safety and Environment Committee of the
Company. He is the Chairman of Audit Committee,
Shareholders’/Investors’ Grievance Committee and
Remuneration Committee of Honda Siel Power Products
Limited. He is a member of Audit Committee and Equity
Issuance Committee of DLF Limited. He is also the
Chairman of Corporate Governance Committee and
Shareholders’/Investor Grievance Committee of DLF
Limited.
He holds 13,544 shares of the Company in his name as on
March 31, 2015.
Prof. Ashok Misra (DIN 00006051) is a B.Tech. in Chemical
Engineering from IIT Kanpur, M.S. in Chemical Engineering from the Tufts University and a Ph.D. in Polymer Science &
Engineering from the University of Massachusetts. He has also completed the ‘Executive Development Programme’ and ‘Strategies for Improving Directors’ Effectiveness
Programme’ at the Kellogg School of Management,
Northwestern University.
He was the Director at the Indian Institute of Technology,
Bombay from 2000 to 2008, where he made significant contribution taking the Institute to greater heights.
During his tenure, the IIT Bombay was transformed into a leading Research & Development Institute, while at the same time maintaining its reputation as a leader in quality engineering education. Prior to this he was at
IIT Delhi from 1977-2000 and at Monsanto Chemical Co. from 1974-1977. He is currently the Chairman-EmeritusIndia, Intellectual Ventures. He is a Fellow of the National
Academy of Sciences, India (President from 2006 to
2008); the Indian National Academy of Engineering, the
Indian Institute of Chemical Engineers, the Indian Plastics
Institute and the Maharashtra Academy of Sciences.
He is the Founder President of the Polymer Processing
Academy, the former President of the Society of Polymer
Science, India and founder President of IIT Alumni Centre,
Bengaluru.
He is an Independent Director on the Board of Jubilant
Life Sciences Limited. He is a member of Audit Committee,
Sustainability and CSR Committee and Stakeholders
Relationship Committee of Jubilant Life Sciences Limited.
He is the Chairman of the Board of Governors of IIT
Roorkee, member of Board of Governors, IIT, Delhi and a member of the Central Advisory Board of Education of
MHRD.
He is a member of the Stakeholders’ Relationship
Committee of the Company and a Member of the
Investment Committee for Aditya Birla Private Equity –
Sunrise Fund. He was on the Board of National Thermal
Power Corporation Limited for 6 years. He is/has been on the Boards or Councils of several national and international institutions. He has received several awards including the Distinguished Alumnus Awards from all his alma maters – IIT Kanpur, Tufts University and University of

Massachusetts. He was awarded the Distinguished Service
Award by IIT Delhi during its Golden Jubilee in 2011. He has co-authored a book on Polymers, was awarded 6 patents and has over 150 international publications. He is on the editorial board of several scientific journals.
He holds 2,300 shares of the Company in his name as on
March 31, 2015.
Prof. Dipak C. Jain (DIN 00228513) has a M.S. in
Mathematical Statistics from Guwahati University,
India and a Ph.D. in Marketing from the University of
Texas at Dellas, United States of America. Prof. Jain is a distinguished teacher and scholar. He had been Dean of the Kellogg School of Management, Northwestern
University, Evanston, Illinois, United States of America from 2001 to 2009 and an Associate Dean from 1996 to
2001. Currently, he is a Chaired Professor of Marketing at
INSEAD, a leading business school with three campuses at Fontainebleau (Paris), France, Singapore and Abu
Dhabi. He has served as the Dean of INSEAD from 201113. He is a Director of Sasin Graduate Institute of Business
Administration of Chulalongkorn University, Bangkok
(Thailand). He has more than 30 years of experience in management education. He has published several articles in international journals on marketing and allied subjects.
His academic honors include the Sidney Levy Award for
Excellence in Teaching in 1995; the John D.C. Little Best
Paper Award in 1991; Kraft Research Professorships in
1989-90 and 1990-91; the Beatrice Research Professorship in 1987-88; the Outstanding Educator Award from the
State of Assam in India in 1982; Gold Medal for the Best
Post- Graduate of the Year from Guwahati University in
India in 1978; Gold Medal for the Best Graduate of the
Year from Darrang College in Assam in India in 1976;
Gold Medal from Jaycees International in 1976; the Youth
Merit Award from Rotary International in 1976; and the
Jawaharlal Nehru Merit Award, the Government of India in 1976.
He is a Director of John Deere & Company, United States of America, Global Logistic Properties, Singapore and
Northern Trust Bank, United States of America. He is also a Director of Reliance Retail Ventures Limited, Reliance Jio
Infocomm Limited and HT Global Education. He is a member of Audit Committee, Corporate Social Responsibility
Committee and Nomination and Remuneration
Committee of Reliance Retail Ventures Limited and also a member of Nomination and Remuneration Committee and Audit Committee of Reliance Jio Infocomm Limited.
He does not hold any shares of the Company in his name as on March 31, 2015.
Dr. Raghunath A. Mashelkar, (DIN 00074119) National
Research Professor, is presently also the President of
Global Research Alliance, a network of publicly funded
R&D Institutes from Asia-Pacific, Europe and USA with over
60,000 scientists.
Dr. Mashelkar served as the Director General of Council of Scientific and Industrial Research (CSIR), with thirtyeight laboratories and about 20,000 employees for over

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CORPORATE GOVERNANCE REPORT (CONTINUED) eleven years. He was also the President of Indian National
Science Academy and President of Institution of Chemical
Engineers (UK).

publicly funded R&D institutions around the World; his contributions in South Africa, Indonesia and Croatia have been particularly notable.

Dr. Mashelkar is on the Board of Directors of several other reputed companies such as Tata Motors Limited, Thermax
Limited, Piramal Enterprises Limited, KPIT Technologies
Limited, TAL Manufacturing Solutions Limited and several other private limited companies. He is Chairman of the
Safety, Health and Environment Committee as well as
Corporate Social Responsibility Committee of Tata Motors
Limited. He is a member of the Audit Committee and
Nomination & Remuneration Committee of Tata Motors
Limited and TAL Manufacturing Solutions Limited. He is also member of Audit Committee of Piramal Enterprises
Limited.

The President of India honoured Dr. Mashelkar with
Padmashri (1991), with Padmabhushan (2000) and with
Padma Vibhushan (2014), which are three of the highest civilian honours in recognition of his contribution to nation building.

Dr. Mashelkar is a member of the Audit Committee, the Human Resources, Nomination and Remuneration
Committee and the Corporate Social Responsibility and
Governance Committee of the Company.
Dr. Mashelkar is only the third Indian engineer to have been elected (1998) as Fellow of Royal Society (FRS),
London in the twentieth century. He was elected Foreign
Associate of National Academy of Science (USA) in 2005,
Associate Foreign Member, American Academy of Arts &
Sciences (2011); Foreign Fellow of US National Academy of Engineering (2003); Fellow of Royal Academy of
Engineering, U.K. (1996), Foreign Fellow of Australian
Technological Science and Engineering Academy (2008) and Fellow of World Academy of Art & Science, USA (2000).
In August 1997, Business India named Dr. Mashelkar as being among the 50 path-breakers in the postIndependent India. In 1998, Dr. Mashelkar won the JRD
Tata Corporate Leadership Award, the first scientist to win it. In June, 1999, Business India did a cover story on
Dr. Mashelkar as “CEO OF CSIR Inc.”, a dream that he himself had articulated, when he took over as DG, CSIR in July
1995. On November 16, 2005, he received the Business
Week (USA) award of ‘Stars of Asia’ at the hands of George
Bush (Sr.), the former President of USA. He was the first
Asian Scientist to receive it.
Deeply connected with the innovation movement in India,
Dr. Mashelkar is currently the Chairman of India’s National
Innovation Foundation, Reliance Innovation Council,
Thermax Innovation Council, KPIT Technology Innovation
Council and Marico Innovation Foundation.
Thirty three universities have honored him with honorary doctorates, which include Universities of London, Salford,
Swinburne,Pretoria, Wisconsin and Delhi.
In the post-liberalized India, Dr. Mashelkar has played a critical role in shaping India’s S&T policies. He was a member of the Scientific Advisory Council to the Prime
Minister and also of the Scientific Advisory Committee to the Cabinet set up by successive governments. He has chaired twelve high powered committees set up to look into diverse issues of higher education, national auto fuel policy, overhauling the Indian drug regulatory system, dealing with the menace of spurious drugs, reforming
Indian agriculture research system, etc. He has been a much sought after consultant for restructuring the

He does not hold any shares of the Company in his name as on March 31, 2015.
Shri Adil Zainulbhai (DIN 06646490) is currently Chairman of Quality Council of India, He retired as Chairman of
McKinsey, India after 34 years at McKinsey, the last 10 of which were in India. Prior to returning to India, he led the Washington office of McKinsey and founded the
Minneapolis office.
Shri Adil has worked directly with the CEOs and promoters of some of the major companies in India and globally – private companies, MNCs and PSUs.
Shri Adil has been working with several parts of the government also and led efforts around urbanization, inclusive growth and energy.
Shri Adil has co-edited the book, ‘Reimagining India’ which featured 60 authors including prominent businessmen, academicians, economists, authors and journalists. The book has been #1 in non-fiction in India on its release and
#2 on Amazon’s International Business List in the US.
Shri Adil grew up in Bombay and graduated in Mechanical
Engineering from the Indian Institute of Technology. He also has an M.B.A. from Harvard Business School.
Shri Adil is very active in community, social causes and education. He is a Board member of Saifee Hospital,
Board of Trustees at Saifee Burhani Upliftment Trust
(redeveloping Bhendi Bazaar in Mumbai), Wockhardt
Foundation, Piramal Swasthya. He was President of
Harvard Business School Alumni Association of India and is on the Global Advisory Board of the Booth School of
Business at University of Chicago.
Shri Adil is a Director of Harvard Business School Club of India, Network18 Media and Investments Limited,
Reliance Jio Infocomm Limited, Cipla Limited, Reliance
Retail Ventures Limited and Larsen and Toubro Limited.
Shri Adil is a Board Member of McKinsey Investment
Office, Washington. Shri Adil is Chairman of the Human
Resources, Nomination and Remuneration Committee and
Risk Management Committee and Member of the Audit
Committee of the Company. He is Chairman of the Audit
Committee, Nomination and Remuneration Committee,
Stakeholders Relationship Committee and Corporate
Social Responsibility Committee of Network18 Media and
Investments Limited. He is also the Chairman of Audit
Committee, Nomination and Remuneration Committee and Corporate Social Responsibility Committee of Reliance
Jio Infocomm Limited and Reliance Retail Ventures Limited.
He is a member of Audit Committee of Cipla Limited.
He does not hold any shares of the Company in his name as on March 31, 2015.

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Smt. Nita M. Ambani (DIN 03115198) is a Commerce
Graduate from Mumbai University and a Diploma holder in Early Childhood Education.
For over two decades, Smt. Nita M. Ambani has played a pivotal role in Reliance’s CSR initiatives and made a significant contribution to India’s social sector development. She is the Founder and Chairperson of
Reliance Foundation, one of India’s foremost philanthropic institutions with a commitment to building an inclusive
India. In accomplishing this vision, she has inspired and led the implementation of many path-breaking initiatives in education, health, rural transformation, urban renewal, environmental protection, disaster relief and rehabilitation, sports, arts, culture and heritage.
Cumulatively, the Reliance Foundation has impacted the lives of over 4 million people in over 5,500 villages and various urban locations.
Smt. Nita M. Ambani was at the forefront of the ecological development of Reliance’s Jamnagar refinery site by implementing a greening plan covering 3.2 million trees over 2000 acres, which led to the annual rainfall in this area nearly doubling. She also designed and developed a world-class township for 5500 families in Jamnagar, setting new standards in the provision of urban facilities and in the quality of life of people. Under her leadership, the Reliance Foundation BIJ (Bharat-India Jodo), which aims to bridge the gap between rural India and urban
India by catalyzing sustainable growth in the rural areas, has reached out to about 48,500 households in over 470 villages, across 12 states.
Smt. Nita M. Ambani exemplified her commitment to people’s welfare by leading the rescue and rehabilitation efforts in the 2001 Gujarat earthquake. In the aftermath of the natural calamities in Uttarakhand in 2013 and Jammu and Kashmir in 2014, she spearheaded the operation
‘Mission Rahat’. Reliance Foundation was one of the first organizations to deploy its team to some of the most inaccessible locations with a focus on providing prompt relief to the affected families and continues to impact their lives through long-term support by way of reconstruction of schools and homes.
Smt. Nita M. Ambani provides leadership to 13 schools that educate over 15,000 students. She is the Founder &
Chairperson of Dhirubhai Ambani International School
(DAIS), which just in a span of 12 years has emerged as a centre of excellence. In 2014, Education World ranked
DAIS as the No. 1 International School in India for the
2nd consecutive year and the Hindustan Times has ranked it as the No. 1 School in Mumbai for 3 years in a row in 2012, 2013 and 2014. The Dhirubhai Ambani
Scholarship Programme has reached out to over 10,000 scholars across India, with about 20% of them being specially-abled, enabling them to pursue higher education opportunities. Under her leadership, Reliance Foundation is planning to establish a world-class multi-disciplinary university, with cutting-edge research facilities.

Smt. Nita M. Ambani is the President of Sir H. N. Reliance
Foundation Hospital and Research Centre, which was inaugurated by the Hon’ble Prime Minister of India
Shri Narendra Modi in 2014. With state-of-the-art infrastructure facilities and technologies and a team of highly qualified and committed team of doctors, nurses and paramedical staff, the hospital aims to provide affordable international healthcare for all. Reliance
Foundation’s Health for All initiative, which aims to provide affordable quality healthcare, has reached out to over 4 lakh people in Mumbai. She has recently joined the
Board of MD Anderson Cancer Centre, USA, which is the world’s premier cancer centre with a mission to making cancer history. Smt. Nita M. Ambani is the first Indian and the second Asian to join the Board of MD Anderson. The
Reliance Foundation Drishti launched by her in 2003 has completed over 14,000 corneal transplants across the country, and in 2012, it launched a registered international
Braille newspaper in Hindi, which has now circulation across India and in 17 other countries.
Smt. Nita M. Ambani is the inspiring architect of the
Mumbai Indians. The Mumbai Indians’ and Reliance
Foundation’s ‘Education For All’ initiative led by her has impacted the lives of over 70,000 underprivileged children. She has been spearheading various sports for development initiatives that support children’s holistic development and also provide them various life skills. The
Reliance Foundation Jr. NBA program, launched in 2013 in association with the National Basketball Association, has reached out to 1 million children across 1,000 schools in
India. She is the Founder & Chairperson of Football Sports
Development Limited that launched the Indian Super
League (ISL) in 2014. With the overwhelming response of fans and football enthusiasts, ISL has been a groundbreaking success in its very first season itself and has emerged as the fourth largest football league in the world in terms of stadium attendance. She leads a grassroots football programme to identify and develop talent from all over India and it has reached out to over 500,000 children in the very first year. Thus, she plays a catalytic role in multiple sports.
Over the years, Smt. Nita M. Ambani has received many awards and honours. In 2013, Sri Chandrasekharendra
Saraswathi Viswa Mahavidyalaya (SCSVMV University),
Kanchipuram conferred on her the Honourary Doctoral
Degree (D. Litt) in recognition of her multifarious contributions to the social sector. In 2015, the All India
Management Association (AIMA) conferred on her the Entrepreneur of the Year award, for her visionary leadership in many path-breaking initiatives, positively impacting millions of lives.
Smt. Nita M. Ambani is a Director of EIH Limited.
She is a promoter and holds 33,98,146 shares of the
Company in her name as on March 31, 2015.

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Annual Report 2014-15

DIRECTORS’ REPORT
Dear Members,
Your Directors are pleased to present the Forty first Annual Report and the Company’s audited financial statement for the financial year ended March 31, 2015.

FINANCIAL RESULTS
The Company’s financial performance, for the year ended March 31, 2015 is summarised below:
2014-15

PROFIT BEFORE TAX
Less: Current Tax Deferred Tax

PROFIT FOR THE YEAR
Add: Balance in Profit and Loss Account

SUB-TOTAL

2013-14

` crore
29,468
6,124
625
22,719
9,326
32,045

$ million*

` crore

$ million*

4,715
980
100
3,635
1,973
5,608

27,818
5,812
22
21,984
8,610
30,594

4,643
970
4
3,669
1,853
5,522

318
18,000
2,944
615
10,168

51
2,880
471
98
2,108

18,000
2,793
475
9,326

3,004
466
79
1,973

LESS: APPROPRIATION:
Adjustment relating to Fixed Assets
Transferred to General Reserve
Proposed dividend on Equity Shares
Tax on dividend

CLOSING BALANCE

* 1 $ = ` 62.5 Exchange Rate as on March 31, 2015 (1 $ = ` 59.915 as on March 31, 2014)

RESULTS OF OPERATIONS AND THE STATE OF
COMPANY’S AFFAIRS
The highlights of the Company’s performance are as under: Revenue from operations decreased by 15.1% to
` 3,40,814 crore ($ 54.5 billion).
Exports decreased by 17.1% to ` 2,28,651 crore
($ 36.6 billion).

13% to ` 3,88,494 crore ($ 62.2 billion). The decline in turnover reflects a sharp fall in crude oil prices during the second half of the year. Strong operating performance from the refining business and stable petrochemicals business performance led to higher operating profits.
Consolidated operating profits before other income and depreciation increased by 7.3% on a year on year basis from
` 34,799 crore to ` 37,364 crore. Profit after Tax was higher by 4.8% at ` 23,566 crore as against ` 22,493 crore in the previous year.

PBDIT increased by 1.3% to ` 40,323 crore ($ 6.5 billion).
Profit before Tax increased by 5.9% to ` 29,468 crore
($ 4.7 billion).
Cash Profit increased by 3.4% to ` 31,832 crore
($ 5.1 billion).
Net Profit increased by 3.3% to ` 22,719 crore
($ 3.6 billion).
Gross Refining Margin was $ 8.6 / bbl for the year ended
March 31, 2015.
The consolidated revenue from operations of the
Company for year ended March 31, 2015 was down by

The financial year 2014-15 has been a very successful and important year for the Company. The Company’s refining business delivered record earnings in a year when the collapse of oil prices unsettled the hydrocarbons market.
During the year, RIL Jamnagar refineries processed
67.9 MMT of crude, achieving an average utilization rate of 110%. The Company was able to capitalize on the market conditions through its operational excellence, higher efficiency and well executed strategies around crude sourcing and product placement. The revenue from Petrochemicals segment decreased reflecting lower product prices resulting from sharp decline in crude and feedstock prices.

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KG-D6 field produced 1.96 million barrels of crude oil,
0.32 million barrels of condensate and 158 BCF of natural gas in 2014-15, reflecting a growth of 12% in case of
Condensate and a reduction of 3% and 12% of Crude Oil and Natural Gas respectively on a year on year basis. The decline in production was largely due to natural decline in fields coupled with partial shutdown of MA field due to
Hudhud cyclone.

Your Directors have recommended a dividend of ` 10
(i.e. 100%) per equity share (last year ` 9.50 per equity share) for the financial year ended March 31, 2015, amounting to ` 3,559 crore (inclusive of tax of ` 615 crore), one of the highest payout by any private sector company in India. The dividend payout is subject to approval of members at the ensuing Annual General Meeting.

The capital expenditure of Reliance on a consolidated basis for 2014-15 was ` 1,00,247 crore including exchange rate difference capitalization. The capital expenditure was principally on account of ongoing expansion projects in petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broadband access and US Shale gas projects.

The dividend will be paid to members whose names appear in the Register of Members as on May 11, 2015 and in respect of shares held in dematerialised form, it will be paid to members whose names are furnished by National
Securities Depository Limited and Central Depository
Services (India) Limited, as beneficial owners as on that date. During the year, the Company commissioned its new PBR
Plant at Hazira, Gujarat, with capability to produce Nickel and Neodymium grade PBR. With the commissioning of this facility, the Company’s total PBR capacity is now at
115 KTPA. RIL also started its new 150 KTPA SBR plant during the year which is expected to stabilise in the coming months.
During the last quarter of 2014-15, RIL started phase-1
PTA capacity of 1,150 KTPA and 650 KTPA of PET capacity at Dahej, Gujarat. Both these plants are expected to stabilise operations in the coming months and will be advantageously positioned to reap the benefits of integration. The new PET resin facility is one of the largest bottle-grade PET resin facility at a single location globally.
The new PTA plant has been built with Invista technology and is highly energy efficient and environment friendly.
Indian market is currently deficit in PTA by over 1.5 MMTPA.
The start-up of the new PTA plant at Dahej will take India closer to self-sufficiency in PTA.
The Company has made offerings of Senior Unsecured
Notes priced under Rule 144A/Regulation S of the
Securities Act, 1933 (USA) aggregating US $ 1.75 billion during January and February 2015. These funds will be utilized for ongoing capital expenditure.
The Company is one of India’s largest contributors to the national exchequer primarily by way of payment of taxes and duties to various government agencies. During the year, a total of ` 33,322 crore ($ 5.3 billion) was paid in the form of various taxes and duties.
The Company is featured in the Fortune Global 500 list of the world’s largest corporations for the eleventh consecutive year and was ranked 114th in terms of revenues and 155th in terms of profit.
No material changes and commitments have occurred after the close of the year till the date of this Report, which affect the financial position of the Company.

DIVIDEND

The dividend payout for the year under review has been formulated in accordance with the Company’s policy to pay sustainable dividend linked to long term growth objectives of the Company to be met by internal cash accruals. MANAGEMENT’S DISCUSSION AND ANALYSIS
REPORT
Management’s Discussion and Analysis Report for the year under review, as stipulated under Clause 49 of the Listing
Agreement with the Stock Exchanges in India, is presented in a separate section forming part of the Annual Report.
The developments in business operations / performance of major subsidiaries consolidated with RIL are as below:

Shale Gas Business
Reliance’s shale gas business continued on its growth trajectory with revenues and EBIT increasing 20.1% and 36.3% respectively, despite a challenging price environment. RIL’s share of net sales volume was at
168 BCFe, compared to 131 BCFe in 2013. EBITDA of
$ 775.1 million in 2014, was up 26% y-o-y.
Operationally, the business continued its strong performance during calendar year 2014, with production reaching the new record levels across the JVs. Gross JV production averaged at ~1.2 Bcfe/day, reflecting growth of 26% over the levels achieved in calendar year 2013. The business has reached an overall development maturity
(with a significant part of the acreages held by production) and this provides adequate investment flexibility in managing the low price environment through prioritizing well capex in the most prolific areas.

Retail Business
Reliance Retail business grew by 21.2% to reach revenue of ` 17,640 crore as against ` 14,556 crore registered in the previous financial year. It continued to grow profitably, achieving profits before depreciation, finance cost and tax expense (PBDIT) of ` 784 crore, an increase of 116%

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DIRECTORS’ REPORT (CONTINUED) on a year on year basis. The format sectors collectively witnessed a five-year CAGR of 31% in revenues.
During the year, Reliance Retail consolidated its market leadership in all of the focus sectors of digital, lifestyle and value sectors. During the year, Reliance Retail undertook an unprecedented store opening plan on an accelerated pace and added a net total of 930 stores to further increase its reach in the underserved markets. A total of
0.9 million square feet area was added. As on 31st March
2015, Reliance Retail operated 2,621 stores, covering an area of 12.5 million square feet across 200 cities.

Jio Infocomm
RIL’s subsidiary, Reliance Jio Infocomm Limited (RJIL) is the only private player with Broadband Wireless Access (BWA) spectrum in all the 22 telecom circles of India. It plans to provide reliable fast internet connectivity through the 20
MHz, contiguous, pan-India BWA spectrum. RJIL has also successfully acquired 1800 MHz spectrum across 14 key circles in February, 2014.
In March 2015, RJIL has successfully acquired the right to use spectrum in 800 MHz & 1800 MHz in 13 key circles across India in the Spectrum Auction conducted by
Department of Telecommunications (DoT), Government of India. With this acquisition, in addition to the pan-India
2300 MHz spectrum, RJIL has spectrum in either 800 MHz or 1800 MHz or both in 20 out of the total of 22 circles in the country. RJIL’s total equivalent spectrum footprint has increased from 597.6 MHz to 751.1MHz (including uplink and downlink), strengthening its position as the largest holder of liberalized spectrum.

This combined spectrum footprint across frequency bands provides significant network capacity and deep in-building coverage. RJIL plans to provide seamless 4G services using LTE in 800 MHz, 1800 MHz and 2300 MHz through an integrated ecosystem.
RJIL is working aggressively in achieving the minimum roll out obligations as specified in the Notice Inviting
Application for the spectrum auction in 2010, per the Test
Schedule Test Procedure (TSTP) issued by DoT in March,
2015.

Media and Entertainment
During the year, Independent Media Trust (IMT), of which RIL is the sole beneficiary, acquired the control of
Network18 Media & Investments Limited (Network18), including its subsidiary TV18 Broadcast Limited (TV18).
This acquisition will differentiate Reliance’s Jio Infocomm business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties.
Network18 has interests in television, digital content, filmed entertainment, digital commerce, magazines, mobile content and allied businesses. Network18, through its group companies, operates a combined bouquet of over 30 channels. Network18 operates a number of digital and mobile properties offering digital content and commerce, including home shopping and online ticketing. It also publishes special interest magazines and has a presence in film production and distribution.
From the date of acquisition of control to 31st March, 2015,
Network 18’s operating revenue stood at ` 2,747 crore and
EBIT at ` 135 crore, on a consolidated basis.

CREDIT RATING
The Company’s financial discipline and prudence is reflected in the strong credit ratings ascribed by rating agencies as given below:
Instrument
International Debt
International Debt
Long Term Debt
Long Term Debt

Rating Agency
S&P
Moody's
CRISIL
Fitch

Rating
BBB+
Baa2
AAA
Ind AAA

Outlook
Stable
Stable
Stable
Stable

Remarks
Two notches above India’s sovereign rating
One notch above India’s sovereign rating
Highest rating awarded by CRISIL
Highest rating awarded by Fitch

CONSOLIDATED FINANCIAL STATEMENT
In accordance with the Companies Act, 2013 (“the Act”) and Accounting Standard (AS) - 21 on Consolidated
Financial Statements read with AS - 23 on Accounting for Investments in Associates and AS - 27 on Financial
Reporting of Interests in Joint Ventures, the audited consolidated financial statement is provided in the Annual
Report.

SUBSIDIARIES, JOINT VENTURES AND
ASSOCIATE COMPANIES
During the year under review, companies listed in
Annexure I to this Report have become or ceased to

be Company’s subsidiaries, joint ventures or associate companies. A report on the performance and financial position of each of the subsidiaries, associates and joint venture companies as per the Companies Act, 2013 is provided as Annexure A to the consolidated financial statement and hence not repeated here for the sake of brevity. The Policy for determining material subsidiaries as approved may be accessed on the Company’s website at the link: http://www.ril.com/getattachment/759df65c9a8d-42ff-a23c-e1c5d892e0c7/Policy-for-determiningMaterial-Subsidiaries.aspx

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DIRECTORS’ RESPONSIBILITY STATEMENT
Your Directors state that:
a)

in the preparation of the annual accounts for the year ended March 31, 2015, the applicable accounting standards read with requirements set out under
Schedule III to the Act, have been followed and there are no material departures from the same;

b)

the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the
Company as at March 31, 2015 and of the profit of the
Company for the year ended on that date;

c)

the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d)

the Directors have prepared the annual accounts on a
‘going concern’ basis;

e)

the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

f)

the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively. CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements set out by SEBI. The
Company has also implemented several best corporate governance practices as prevalent globally. The report on Corporate Governance as stipulated under the Listing
Agreement forms an integral part of this Report. The requisite certificate from the Auditors of the Company confirming compliance with the conditions of corporate governance is attached to the report on Corporate
Governance.

BUSINESS RESPONSIBILITY REPORT
As stipulated under the Listing Agreement, the
Business Responsibility report describing the initiatives taken by the Company from environmental, social and governance perspective is attached as part of the Annual
Report.

CONTRACTS AND ARRANGEMENTS WITH
RELATED PARTIES
All contracts / arrangements / transactions entered by the
Company during the financial year with related parties were in the ordinary course of business and on an arm’s length basis. During the year, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Company’s website at the link: http://www.ril.com/getattachment/007dfb3a20aa-4b32-9a5b-ac51738bad00/Policy-on-Materiality-ofRelated-Party-Transaction.aspx
Your Directors draw attention of the members to Note 32 to the financial statement which sets out related party disclosures. CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Corporate Social Responsibility and Governance
Committee (CSR&G Committee) has formulated and recommended to the Board, a Corporate Social
Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, which has been approved by the Board.
The CSR Policy may be accessed on the Company’s website at the link: http://www.ril.com/getattachment/ d5fd70ef-e019-47e5-bb83-de2077874505/CorporateSocial-Responsibility-Policy.aspx The key philosophy of all CSR initiatives of the Company is guided by three core commitments of Scale, Impact and
Sustainability.
The Company has identified six focus areas of engagement which are as under:
Rural Transformation: Creating sustainable livelihood solutions, addressing poverty, hunger and malnutrition.
Health: Affordable solutions for healthcare through improved access, awareness and health seeking behaviour. Education: Access to quality education, training and skill enhancement.
Environment: Environmental sustainability, ecological balance, conservation of natural resources.
Protection of National Heritage, Art and Culture:
Protection and promotion of India’s art, culture and heritage. Disaster Response: Managing and responding to disaster. 157

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DIRECTORS’ REPORT (CONTINUED)
The Company would also undertake other need based initiatives in compliance with Schedule VII to the Act.
During the year, the Company has spent ₹ 761 crore
(around 2.85% of the average net profits of last three financial years) on CSR activities.
The Annual Report on CSR activities is annexed herewith marked as Annexure II.

RISK MANAGEMENT
During the year, your Directors have constituted a Risk
Management Committee which has been entrusted with the responsibility to assist the Board in (a) Overseeing and approving the Company’s enterprise wide risk management framework; and (b) Overseeing that all the risks that the organization faces such as strategic, financial, credit, market, liquidity, security, property,
IT, legal, regulatory, reputational and other risks have been identified and assessed and there is an adequate risk management infrastructure in place capable of addressing those risks. A Group Risk Management Policy was reviewed and approved by the Committee.
The Company manages, monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives. The Company’s management systems, organisational structures, processes, standards, code of conduct and behaviors together form the Reliance Management System (RMS) that governs how the Group conducts the business of the
Company and manages associated risks.
The Company has introduced several improvements to
Integrated Enterprise Risk Management, Internal Controls
Management and Assurance Frameworks and processes to drive a common integrated view of risks, optimal risk mitigation responses and efficient management of internal control and assurance activities. This integration is enabled by all three being fully aligned across Group wide
Risk Management, Internal Control and Internal Audit methodologies and processes.

INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness in the design or operation were observed.

DIRECTORS AND KEY MANAGERIAL
PERSONNEL
In accordance with the provisions of the Act and the
Articles of Association of the Company, Shri Hital R.
Meswani and Shri P.M.S. Prasad, Directors of the Company, retire by rotation at the ensuing Annual General
Meeting and being eligible have offered themselves for

re-appointment. Shri Mahesh P. Modi, Independent
Director of the Company passed away in February 2015.
The Board places on record its deep appreciation for the valuable contribution made by him during his tenure as
Director of the Company. Shri Maheswar Sahu, who was appointed as an additional director, demitted office as a
Director effective March 30, 2015.
During the year under review, the members approved the appointments of Smt. Nita M. Ambani as a non-executive
Non-Independent Director who is liable to retire by rotation and of Shri Mansingh L. Bhakta, Shri Yogendra
P. Trivedi, Dr. Dharam Vir Kapur, Prof. Ashok Misra,
Prof. Dipak C. Jain, Dr. Raghunath A. Mashelkar and
Shri Adil Zainulbhai as Independent Directors who are not liable to retire by rotation. The members have also re-appointed Shri Mukesh D. Ambani as the Managing
Director and Shri Hital R. Meswani and Shri P.M.S. Prasad as whole-time directors, designated as executive directors.
The Company has received declarations from all the
Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under the Act and Clause 49 of the Listing Agreement with the Stock Exchanges.
The Company has devised a Policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors which includes criteria for performance evaluation of the non-executive directors and executive directors.
The Company had engaged two consultants for looking at the best practices prevalent in the industry and advising with respect to evaluation of Board members. On the basis of recommendations of the consultants and the Policy for performance evaluation of Independent Directors, Board,
Committees and other individual Directors, a process of evaluation was followed by the Board for its own performance and that of its Committees and individual
Directors.
The details of programmes for familiarisation of
Independent Directors with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company and related matters are put up on the website of the Company at the link: http://www.ril.com/getattachment/3b0559bd-20fd-4e3e8a35-1c0a8f090224/Familiarisation-Programme-forIndependent-Director.aspx The following policies of the Company are attached herewith marked as Annexure IIIA and Annexure IIIB:
a)

Policy for selection of Directors and determining
Directors independence; and

b)

Remuneration Policy for Directors, Key Managerial
Personnel and other employees.

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EMPLOYEES’ STOCK OPTION SCHEME
The Human Resources, Nomination and Remuneration
Committee of the Board of Directors of the Company, inter alia, administers and monitors the Employees’ Stock
Option Scheme of the Company in accordance with the applicable SEBI Guidelines.
The applicable disclosures as stipulated under the SEBI
Guidelines as on March 31, 2015 (cumulative position) with regard to the Employees’ Stock Option Scheme
(ESOS) are provided in Annexure IV to this Report.
The issue of equity shares pursuant to exercise of options does not affect the Statement of Profit and Loss of the
Company, as the exercise is made at the market price prevailing as on the date of the grant plus taxes as applicable. The Company has received a certificate from the Auditors of the Company that the Scheme has been implemented in accordance with the SEBI Guidelines and the resolution passed by the members. The certificate would be placed at the Annual General Meeting for inspection by members.
Voting rights on the shares issued to employees under the ESOS are either exercised by them directly or through their appointed proxy.

AUDITORS AND AUDITORS’ REPORT
Statutory Auditors
M/s. Chaturvedi & Shah, Chartered Accountants,
Deloitte Haskins & Sells LLP, Chartered Accountants and
M/s. Rajendra & Co., Chartered Accountants, Statutory
Auditors of the Company, hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. They have confirmed their eligibility to the effect that their re-appointment, if made, would be within the prescribed limits under the Act and that they are not disqualified for re-appointment.
The Notes on financial statement referred to in the
Auditors’ Report are self-explanatory and do not call for any further comments. The Auditors’ Report does not contain any qualification, reservation or adverse remark.

Cost Auditors
The Board has appointed the following cost auditors for conducting the audit of cost records of the Company for various segments for the financial year 2014-15:
(i)

For Textiles Business - M/s. Kiran J. Mehta & Co., Cost
Accountants;

(ii) For Chemicals Business - M/s. Diwanji & Associates,
Cost Accountants, M/s. K.G. Goyal & Associates, Cost
Accountants, M/s. V.J. Talati & Co., Cost Accountants,
M/s. Kiran J. Mehta & Co., Cost Accountants,

M/s. Bandyopadhyaya Bhaumik & Co., Cost
Accountants, M/s. Shome & Banerjee, Cost
Accountants and M/s. Dilip M. Malkar & Co., Cost
Accountants;
(iii) For Polyester Business - Shri Suresh D. Shenoy, Cost
Accountant and M/s. V. Kumar & Associates, Cost
Accountants;
(iv) For Electricity Generation - M/s. Dilip M. Malkar & Co.,
Cost Accountants;
(v) For Petroleum Business – M/s. V.J. Talati & Co., Cost
Accountants; and
(vi) For Oil & Gas Business - Shri Suresh D. Shenoy,
Cost Accountant and M/s. Shome & Banerjee, Cost
Accountants.
M/s. Shome & Banerjee, Cost Accountants, were nominated as the Company’s Lead Cost Auditor.

Secretarial Auditor
The Board has appointed Dr. K.R. Chandratre, Practising
Company Secretary, to conduct Secretarial Audit for the financial year 2014-15. The Secretarial Audit Report for the financial year ended March 31, 2015 is annexed herewith marked as Annexure V to this Report. The Secretarial Audit
Report does not contain any qualification, reservation or adverse remark.

DISCLOSURES:
CSR&G Committee
The CSR&G Committee comprises Shri Yogendra P. Trivedi
(Chairman), Shri Nikhil R. Meswani, Dr. Dharam Vir Kapur and Dr. Raghunath A. Mashelkar as other members.

Audit Committee
The Audit Committee comprises Independent Directors namely Shri Yogendra P. Trivedi (Chairman), Dr. Raghunath
A. Mashelkar and Shri Adil Zainulbhai as other members.
All the recommendations made by the Audit Committee were accepted by the Board.

Vigil Mechanism
The Vigil Mechanism of the Company, which also incorporates a whistle blower policy in terms of the Listing
Agreement, includes an Ethics & Compliance Task Force comprising senior executives of the Company. Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone line or a letter to the
Task Force or to the Chairman of the Audit Committee.
The Policy on vigil mechanism and whistle blower policy may be accessed on the Company’s website at the link: http://www.ril.com/getattachment/c5c2d3f9-8a4d-4075830f-33d9917d05b4/Vigil-Mechanism-and-WhistleBlower-Policy.aspx 159

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Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Meetings of the Board
Seven meetings of the Board of Directors were held during the year. For further details, please refer report on
Corporate Governance on page no. 128 of this Annual
Report.

the Company Secretary and the same will be furnished on request. The full Annual Report including the aforesaid information is being sent electronically to all those members who have registered their email addresses and is available on the Company’s website.

GENERAL
Particulars of Loans given, Investments made,
Guarantees given and Securities provided
Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient are provided in the standalone financial statement (Please refer to Note 11, 12, 13 and 37 to the standalone financial statement).

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:
1.

Details relating to deposits covered under Chapter V of the Act.

2.

Issue of equity shares with differential rights as to dividend, voting or otherwise.

3.

The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under the Act, are provided in Annexure VI to this Report.

Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except ESOS referred to in this Report.

4.

Neither the Managing Director nor the Whole-time
Directors of the Company receive any remuneration or commission from any of its subsidiaries.

Extract of Annual Return

5.

No significant or material orders were passed by the
Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in future. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

Extract of Annual Return of the Company is annexed herewith as Annexure VII to this Report.

Particulars of Employees and related disclosures
In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in the Annual Report.

Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual
Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule
5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the
Annual Report.

Your Directors would like to express their sincere appreciation for the assistance and co-operation received from the financial institutions, banks, Government authorities, customers, vendors and members during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed services by the Company’s executives, staff and workers.

Having regard to the provisions of the first proviso to
Section 136(1) of the Act and as advised, the Annual
Report excluding the aforesaid information is being sent to the members of the Company. The said information is available for inspection at the registered office of the Company during working hours and any member interested in obtaining such information may write to

ACKNOWLEDGEMENT

For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
April 17, 2015

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Management Review

Governance

Financial Statements

Shareholder Information

Directors’ Report

ANNEXURE I TO DIRECTORS’ REPORT
Companies which became / ceased to be Company’s Subsidiaries, Joint Ventures or Associate Companies:
1.

Companies which have become subsidiaries during the financial year 2014-15:

Sr.
Name of Company
No.

Sr.
Name of Company
No.

1.

Bhagyashri Mercantile Private Limited

6.

Kaizen Capital LLP

2.

Chitrani Mercantile Private Limited

7.

LPG Infrastructure (India) Limited

3.

Ethane Crystal LLC

8.

Mark Project Services Private Limited

4.

Ethane Emerald LLC

9.

Rancore Technologies Private Limited

5.

Ethane Opal LLC

10.

Reliance Agri Ventures Private Limited

6.

Ethane Pearl LLC

11.

Reliance Convention & Exhibition Centre Limited

7.

Ethane Sapphire LLC

12.

Reliance Corporate Centre Limited

8.

Ethane Topaz LLC

13.

Reliance Corporate Services Limited

9.

Gopesh Commercials Private Limited

14.

Reliance Dairy Foods Limited

10.

Nemita Commercials Private Limited

15.

Reliance F&B Services Limited

11.

Nisarga Commercials Private Limited

16.

Reliance Financial Distribution & Advisory Services Limited

12.

Office Depot Reliance Supply Solutions Private Limited

17.

Reliance Food Processing Solutions Limited

13.

Prakruti Commercials Private Limited

18.

Reliance Gas Corporation Limited

14.

Reliance Ethane Holding Pte Limited

19.

Reliance Industries Investment And Holding Limited

15.

Reliance Innovative Building Solutions Private Limited

20.

Reliance Infrastructure Management Services Limited

16.

Reliance Jio Digital Services Private Limited

21.

Reliance Nutritious Food Products Limited

17.

Reliance Jio Global Resources LLC

22.

Reliance People Serve Limited

18.

Reliance Jio Media Private Limited

23.

Reliance Review Cinema Limited

19.

Reliance Textiles Limited

24.

Reliance Security Solutions Limited

20.

Vijayant Commercials Private Limited

25.

Reliance Strategic (Mauritius) Limited

26.

Reliance Styles Fashion India Private Limited

27.

Reliance Styles India Limited

2.

Companies which ceased to be subsidiaries during the financial year 2014-15:

Sr.
Name of Company
No.
1.

Achman Commercial Private Limited

2.

Delight Proteins Limited

3.

GAPCO Rwanda Limited

4.

GenNext Innovation Ventures Limited

5.

Infotel Telecom Limited

3.

No company has become/ceased to be a joint venture or associate during the financial year 2014-15.

161

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Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
ANNEXURE II TO DIRECTORS’ REPORT
Annual Report on Corporate Social Responsibility (CSR) activities for the financial year 2014-15
1.

A brief outline of the Company’s CSR Policy including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR Policy and projects or programs and the composition of CSR Committee.

Refer Sections:
(a) Corporate Social
Responsibility and
(b) Disclosures: CSR&G
Committee in this
Report

2.

Average net profit of the Company for last three financial years

` 26,648 crore

3.

Prescribed CSR expenditure
(two percent of the amount mentioned in item 2 above)

` 532.96 crore

4.

Details of CSR spent during the financial year:
Total amount to be spent for the financial year

` 532.96 crore

Amount unspent, if any

Not applicable

Manner in which the amount spent during the financial year

Details given below

DETAILS OF AMOUNT SPENT ON CSR ACTIVITIES DURING THE FINANCIAL YEAR 2014-15
Sr. CSR project
No. or Activity
Identified

1

Rural
Transformation
- Reliance
Foundation
Bharat India Jodo
- “Enhancing Rural
Livelihoods”

Sector in which the project is covered (clause no. of
Schedule VII to the Companies
Act, 2013, as amended)

Project of Program
(1) Local Area or
Other
(2) Specify the
State and district where projects or programs was undertaken Amount
Outlay
(Budget)
Project or
Program
wise
(` in crore)

Cl. (i) eradicating hunger, poverty and malnutrition;
Cl. (iv) ensuring environmental sustainability;
Cl. (x) rural development projects.

Andhra PradeshKurnool,
Nizamabad,
Vizianagram,
Srikakulam
ChhatisgarhRajnandgaon
Gujarat-Amreli,
Rajkot, Aravali,
Bharuch,
Surat, Patan
JharkhandDeogarh
KarnatakaGadag,
Bidar
Madhya Pradesh-Agar,
Chhindwara,
Seoni, Mandla,
Panna, Barwani
MaharashtraParbhani,
Yavatmal,
Nagpur
Orissa-Balangir
Rajasthan-Jaipur,
Sawai Madhopur
TamilnaduSivaganga,
Ramanathapuram

127.31

Amount spent on the Projects or Programs
Sub Heads:
(1) Direct
Expenditure
on Projects or
Programs
(2) Overheads
(` in crore)
101.69

Cumulative
Expenditure
upto the reporting period i.e.
FY 20142015
(` in crore)

Amount
Spent Direct or through
Implementing
Agency

101.69

Implementing
Agency Reliance
Foundation*

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Management Review

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Financial Statements

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Directors’ Report

Sr. CSR project
No. or Activity
Identified

2

Rural
Transformation
- Information
Services - “Enable access to need based localespecific content in agriculture, marine fisheries, public health, disaster response and other areas by leveraging technology” Sector in which the project is covered (clause no. of
Schedule VII to the Companies
Act, 2013, as amended)

Project of Program
(1) Local Area or
Other
(2) Specify the
State and district where projects or programs was undertaken Amount
Outlay
(Budget)
Project or
Program
wise
(` in crore)

Cl. (i) eradicating hunger, poverty and malnutrition,
Cl. (iv) ensuring environmental sustainability,
Cl. (x) rural development projects;

Andhra PradeshVishakapatanam,
East Godavari, West
Godavari, Nellore,
Krishna, Srikakulam,
Vizianagram, Kurnool,
Prakasam, Guntur
Gujarat-Bharuch,
Junagadh,
Surendranagar, Surat,
Bhavnagar, Kutch,
Patan, Ahmedabad
MaharashtraParbhani, Yavatmal,
Amravati, Washim,
Akola, Wardha,
Buldhana, Hingoli,
Nanded, Ratnagiri,
Sindhdurg,
Aurangabad, Jalna
Orissa-Bargarh,
Jagatsinghpur,
Ganjam, Bhadrak,
Balangir, Kandhamal,
Puri, Baleswar
TamilnaduRamanathapuram,
Sivaganga, Thanjavur,
Ariyalur, Pudukkottai,
Nagapattinam,
Cuddalore,
Villupuram, Dindigul,
Theni, Tuticorin,
Kanyakumari,
Thrivarur, Tirunelveli,
Salem, Trichy, Chennai
Kerala-Kozhikode,
Malapuram,
Ernakulam, Alapuzha,
Kasargod, Kollam,
Kochi
Chattisgarh-Raipur,
Rajnandgaon
Karnataka-Udipi,
Uttar Kanada,
Dakshin Kanada
Madhya PradeshUjjain, Chhindwara,
Seoni, Mandla,
Jabalpur,
Khandwa, Bhopal
Rajasthan-Jodhpur,
Sawai Madhopur

13.49

Amount spent on the Projects or Programs
Sub Heads:
(1) Direct
Expenditure
on Projects or
Programs
(2) Overheads
(` in crore)
9.65

Cumulative
Expenditure
upto the reporting period i.e.
FY 20142015
(` in crore)

Amount
Spent Direct or through
Implementing
Agency

9.65

Implementing
Agency Reliance
Foundation*

163

164

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Sr. CSR project
No. or Activity
Identified

3

4

Health Outreach
Programme II “Static, Mobile
Medical Units and camps for primary and preventive healthcare including diagnostics” Health - Drishti
“Corneal
transplants and other activities for visually impaired”

Sector in which the project is covered (clause no. of
Schedule VII to the Companies
Act, 2013, as amended)

Cl. (i) promoting health care including preventive health care

Cl. (i) promoting health care including preventive health care Project of Program
(1) Local Area or
Other
(2) Specify the
State and district where projects or programs was undertaken UttarakhandUttarkashi, Rudra
Prayag
West Bengal-East
Midnapur,Nadia,24
Parganas-South
Puduchery- Yanam
Maharashtra-Mumbai

Assam-Tinsukia
Andhra PradeshAnantapur, Chittoor,
East Godavari,Guntur,
Kadapa,Krishna,
Kurnool,Nellore,
Prakasam, Srikakulam,
Visakhapatnam,
Vizianagaram, West
Godavari,
Machilipatnam
Bihar- Arwal,
Bhagalpur, Buxar,
Chhapra, Gaya,
Nawada, Saharsa,
Patna, Aurangabad,
Begusarai,
Madhubani,
Sitamarhi, Gopalganj,
Kishanganj, Saran
Chhattisgarh-Raipur,
Bemetra, Balod,
Bilaspur, Koriya,
Rajnandgaon
Delhi- Baljeet Nagar,
Central Delhi, North
West Delhi, South
West Delhi
Gujarat- Bharuch,
Narmada, Surat,
Tapi, Valsad
Haryana- Rohtak,
Gurgaon,
Mandi, Jind, Karnal,
Palwal,Yamunanagar,
Sonepat,Hisar,
Kurukshetra,Bhiwani,Faridabad,Panipat

Amount
Outlay
(Budget)
Project or
Program
wise
(` in crore)

Amount spent on the Projects or Programs
Sub Heads:
(1) Direct
Expenditure
on Projects or
Programs
(2) Overheads
(` in crore)

Cumulative
Expenditure
upto the reporting period i.e.
FY 20142015
(` in crore)

Amount
Spent Direct or through
Implementing
Agency

3.15

3.14

3.14

Implementing
Agency Reliance
Foundation*

2.86

1.28

1.28

Implementing
Agency Reliance
Foundation*

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Financial Statements

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Directors’ Report

Sr. CSR project
No. or Activity
Identified

Sector in which the project is covered (clause no. of
Schedule VII to the Companies
Act, 2013, as amended)

Project of Program
(1) Local Area or
Other
(2) Specify the
State and district where projects or programs was undertaken Himachal PradeshKangra, Bilaspur
Jammu & KashmirJammu, Ramban,
Srinagar
Jharkhand- East
Singhbhum, Deogarh,
Giridih, Simga
Karnataka- Bangalore,
Bandipore, Bidar,
Bijapur, Chikmagalur,
Davangere, Gulbarga, Mysore, Kolar,
Belgaum, Bellary,
Raichur, Yadgir, Haveri,
Dharwad
Madhya PradeshSehore, Balod,
Durg,Gwalior,
Balaghat,Bhopal,
Dewas, Harda,
Hoshangabad,Indore,
Raisen, Rajgarh,
Saugor, Shajapur,
Sidhi, Ujjain,
Vidisha, Guna,Katni,
Chhindwara
MaharashtraBuldhana, Parbhani,
Ahmadnagar, Hingoli,
Kolhapur, Nanded,
Nandurbar, Nashik,
Osmanabad, Pune,
Satara, Solapur,
Thane, Amravati,
Nagpur, Navi Mumbai,
Akola, Bhandara,
Jalgaon, Mumbai,
Yavatmal, Latur
NCT of Delhi- East
Delhi, North Delhi,
North East Delhi,
South Delhi,
West Delhi
Odissha- Bargarh,
Ganjam
Punjab-Amritsar,
Firozpur, Gurdaspur,
Hoshiarpur, Jalandhar,
Ludhiana, Muktsar,
Patiala, Sangrur, Tarn
Taran, Fatehgarh
Sahib, Moga, Ropar,
Bathinda, Kapurthala

Amount
Outlay
(Budget)
Project or
Program
wise
(` in crore)

Amount spent on the Projects or Programs
Sub Heads:
(1) Direct
Expenditure
on Projects or
Programs
(2) Overheads
(` in crore)

Cumulative
Expenditure
upto the reporting period i.e.
FY 20142015
(` in crore)

Amount
Spent Direct or through
Implementing
Agency

165

166

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Sr. CSR project
No. or Activity
Identified

Sector in which the project is covered (clause no. of
Schedule VII to the Companies
Act, 2013, as amended)

Project of Program
(1) Local Area or
Other
(2) Specify the
State and district where projects or programs was undertaken Rajasthan-Alwar,
Bharatpur,
Chittaurgarh, Alwar,
Jaipur, Jhunjhunu
Tamilnadu-Chennai,
Dindigul, Kancheepuram, Krishnagiri,
Nagapattinam,
Perambalur,
Ramanathapuram,
Thanjavur, Thiruvallur,
Vellore,Pudukkottai,Madurai,Trichy,
Ariyalur,Sivagangai,Tiruchirapalli,
Namakkal, Theni,
Tirunelveli, Virudhunagar, Cuddalore, Dharmapuri, Pattukkottai,
Salem
Telangana- Hyderabad, Adilabad,
Karimnagar, Khammam, Mahbubnagar,
Medak, Nalgonda,
Nizamabad, Rangareddy, Warangal,
Secunderabad,
Karimnagar
Uttar PradeshAligarh, Baghpat,
Bareilly, Bulandshahr,
Ghaziabad, Gonda,
Meerut, Muzaffarnagar, Saharanpur,
Amroha, Bijnor, Budaun, Kasganj, Noida,
Rampur, Shamli, Agra,
Hathras, Pratapgarh,
Azamgarh, Etah,Mainpur, Mathura,
Muradabad, Sambalpur, Sonbhadra,
Bagpat, Jaunpur,
Shahjanpur, Deoria,
Hapur, Hatras
Uttarakhand -Nainital,
Gunthia, Dehradun
West Bengal-Nadia,
Bankura, Hugli,
Kolkata, Murshidabad,
Purba Medinipur,
Howrah, Bardhaman,
South 24 Parganas,
Paschim Medinipur,
Burdwan, Malda,
North 24 Parganas,
Purba Mednipur

Amount
Outlay
(Budget)
Project or
Program
wise
(` in crore)

Amount spent on the Projects or Programs
Sub Heads:
(1) Direct
Expenditure
on Projects or
Programs
(2) Overheads
(` in crore)

Cumulative
Expenditure
upto the reporting period i.e.
FY 20142015
(` in crore)

Amount
Spent Direct or through
Implementing
Agency

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Management Review

Governance

Financial Statements

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Directors’ Report

Sr. CSR project
No. or Activity
Identified

5

6

7

8

Health - Autism
Project

Health - “to develop innovative technology that will help train medical students and clinicians for better diagnosis and improved healthcare” Health Partnerships with
Non-Government
Organisations

Sector in which the project is covered (clause no. of
Schedule VII to the Companies
Act, 2013, as amended)

Cl. (i) promoting health care including preventive health care
Cl. (i) promoting health care including preventive health care

New Delhi

1.50

Amount spent on the Projects or Programs
Sub Heads:
(1) Direct
Expenditure
on Projects or
Programs
(2) Overheads
(` in crore)
1.50

Maharashtra-Mumbai

35.00

24.25

24.25

Implementing
Agency Reliance
Foundation*

Cl. (i) promoting health care including preventive health care
Cl. (x) rural development projects

All States and Union
Territories (UTs) of
India

5.80

5.54

5.54

Implementing
Agency Reliance
Foundation*

Madhya PradeshShadol

0.45

0.36

0.36

Implementing
Agency Reliance
Foundation*

Jammu and KashmirSrinagar, Jammu
Uttarakhand Uttarkashi, Rudra
Prayag
All States and UTs of
India

19.64

7.07

7.07

Implementing
Agency Reliance
Foundation*

9.75

4.01

4.01

Implementing
Agency Reliance
Foundation*

Kerala- Kottayam and Kochi, Punjab:
Ludhiana and
Jalandhar, Delhi,
Maharashtra-Mumbai,
West Bengal-Kolkata,
Tamil Nadu-Chennai
Maharashtra-Mumbai

6.30

4.06

4.06

Implementing
Agency Reliance
Foundation*

1.50

1.35

1.35

Implementing
Agency Reliance
Foundation*

Maharashtra-Nashik

85.37

0.11

0.11

Implementing
Agency Reliance
Foundation*

Community
Development

9

Disaster Relief

Cl. (x) rural development projects

Education - DA
Scholarships

Cl. (ii) promoting education 11

Education
- Reliance
Foundation Jr.
NBA Programme

Cl. (ii) promoting education; Cl. (vii) training to promote sports

12

Education
- Reliance
University

Cl. (ii) promoting education 13

Environment

Cl (iv) ensuring environmental sustainability

10

Project of Program
(1) Local Area or
Other
(2) Specify the
State and district where projects or programs was undertaken Amount
Outlay
(Budget)
Project or
Program
wise
(` in crore)

Cumulative
Expenditure
upto the reporting period i.e.
FY 20142015
(` in crore)

Amount
Spent Direct or through
Implementing
Agency

1.50

Implementing
Agency Reliance
Foundation*

167

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Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Sr. CSR project
No. or Activity
Identified

Sector in which the project is covered (clause no. of
Schedule VII to the Companies
Act, 2013, as amended)

Project of Program
(1) Local Area or
Other
(2) Specify the
State and district where projects or programs was undertaken Amount
Outlay
(Budget)
Project or
Program
wise
(` in crore)

Cumulative
Expenditure
upto the reporting period i.e.
FY 20142015
(` in crore)

Amount
Spent Direct or through
Implementing
Agency

1.70

Amount spent on the Projects or Programs
Sub Heads:
(1) Direct
Expenditure
on Projects or
Programs
(2) Overheads
(` in crore)
1.68

1.68

Implementing
Agency Reliance
Foundation*
Implementing
Agency Reliance
Foundation*

14

Education and
Other Initiatives

Cl. (ii) promoting education All States and UTs of
India

15

Health - Sir
HN Reliance
Foundation
Hospital and
Research Centre
Health-CSR at
Manufacturing
locations

Cl. (i) promoting health care including preventive health care
Cl. (i) promoting preventive healthcare

Maharashtra-Mumbai

613.75

553.89

553.89

States: 6 (Gujarat,
Maharashtra, Andhra
Pradesh, Uttar
Pradesh, Punjab,
Madhya Pradesh)
UT-1 (Dadra and
Nagar Haveli)
Districts-13(Allahabad,
Barabanki, Bharuch,
Surat, Nagpur, Raigad,
Hoshiarpur, Jamnagar,
East Godavari,
Ahmedabad,
Vadodara, Shahdol,
Dadra & Nagar Haveli
States: 6 (Gujarat,
Maharashtra, Andhra
Pradesh, Uttar
Pradesh, Punjab,
Madhya Pradesh)
UT-1 (Dadra and
Nagar Haveli)
Districts-13(Allahabad,
Barabanki, Bharuch,
Surat, Nagpur, Raigad,
Hoshiarpur, Jamnagar,
East Godavari,
Ahmedabad,
Vadodara, Shahdol,
Dadra & Nagar Haveli
Andhra Pradesh-East
Godavari

10.47

14.40

14.40

Direct/
Implementing
Agency**

2.90

1.88

1.88

Direct/
Implementing
Agency**

0.84

0.79

0.79

States: Gujarat,
Maharashtra, Andhra
Pradesh, Uttar
Pradesh, Punjab,
Madhya Pradesh)
Districts-Barabanki,
Bharuch, Surat,
Nagpur, Raigad,
Hoshiarpur, Jamnagar,
East Godavari,
Vadodara, Shahdol

12.01

10.24

10.24

Direct/
Implementing
Agency**
Direct/
Implementing
Agency**

16

17

Community
Cl. (x) rural
Development-CSR development at manufacturing projects locations 18

Disaster Relief-CSR at manufacturing locations Education-CSR at
Manufacturing
locations

19

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Cl. (ii) promoting education 02-45

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Sr. CSR project
No. or Activity
Identified

20

Other InitiativesCSR at
Manufacturing
locations

Sector in which the project is covered (clause no. of
Schedule VII to the Companies
Act, 2013, as amended)

Various clauses of
Schedule VII

Project of Program
(1) Local Area or
Other
(2) Specify the
State and district where projects or programs was undertaken Amount
Outlay
(Budget)
Project or
Program
wise
(` in crore)

States: Gujarat,
Maharashtra,
Andhra Pradesh,
Uttar Pradesh, Punjab,
Madhya Pradesh
UT-Dadra and
Nagar Haveli
Districts-Allahabad,
Barabanki, Bharuch,
Surat, Nagpur, Raigad,
Hoshiarpur, Jamnagar,
East Godavari,
Ahmedabad,
Vadodara, Shahdol,
Dadra & Nagar Haveli
Total - Direct Expenses

11.94

Total - Indirect
Expenses
Grand Total

Cumulative
Expenditure
upto the reporting period i.e.
FY 20142015
(` in crore)

Amount
Spent Direct or through
Implementing
Agency

4.09

Direct/
Implementing
Agency**

750.98

750.98

9.60
965.73

Amount spent on the Projects or Programs
Sub Heads:
(1) Direct
Expenditure
on Projects or
Programs
(2) Overheads
(` in crore)
4.09

9.60

760.58

760.58

*Reliance Foundation (RF) is a company within the meaning of Section 8 of the Companies Act, 2013 and has a comprehensive approach towards development with an overall aim to create and support meaningful and innovative activities that address some of India’s most pressing developmental challenges, with the aim of enabling lives, living and livelihood for a stronger and inclusive India. RF has an established track record of more than three years in undertaking such projects and programs.
** Some CSR activities have been carried out directly and some through support to several other Non-Governmental Organisations or Charitable Institutions.

RESPONSIBILITY STATEMENT
The Responsibility Statement of the Corporate Social Responsibility and Governance (CSR&G) Committee of the Board of
Directors of the Company, is reproduced below:
‘The implementation and monitoring of Corporate Social Responsibility (CSR) Policy, is in compliance with CSR objectives and policy of the Company.’

Sd/-

Sd/-

Nikhil R. Meswani
Executive Director

Yogendra P. Trivedi
Chairman, CSR&G Committee

April 17, 2015

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Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
4.1.2 In evaluating the suitability of individual
Board members, the HRNR Committee may take into account factors, such as:

ANNEXURE IIIA TO DIRECTORS’ REPORT
Policy for Selection of Directors and determining Directors’ independence
1.
1.1

1.2

2.
2.1

General understanding of the Company’s business dynamics, global business and social perspective;

Introduction
Reliance Industries Limited (RIL) believes that an enlightened Board consciously creates a culture of leadership to provide a long-term vision and policy approach to improve the quality of governance.
Towards this, RIL ensures constitution of a Board of Directors with an appropriate composition, size, diversified expertise and experience and commitment to discharge their responsibilities and duties effectively.

Educational and professional background
Standing in the profession;
Personal and professional ethics, integrity and values;
Willingness to devote sufficient time and energy in carrying out their duties and responsibilities effectively.

RIL recognizes the importance of Independent
Directors in achieving the effectiveness of the
Board. RIL aims to have an optimum combination of Executive, Non-Executive and Independent
Directors.

4.1.3 The proposed appointee shall also fulfill the following requirements:
Shall possess a Director Identification
Number;
Shall not be disqualified under the
Companies Act, 2013;

Scope and Exclusion:
This Policy sets out the guiding principles for the
Human Resources, Nomination and Remuneration
Committee for identifying persons who are qualified to become Directors and to determine the independence of Directors, in case of their appointment as independent directors of the
Company.

3.

“Human
Resources,
Nomination and Remuneration Committee” means the committee constituted by RIL’s Board in accordance with the provisions of Section 178 of the Companies Act,
2013 and Clause 49 of the Equity Listing Agreement.

3.3

Shall abide by the Code of Conduct established by the Company for Directors and Senior Management Personnel;

“Director” means a director appointed to the Board of a company.

3.2

Shall endeavour to attend all Board
Meetings and wherever he is appointed as a Committee Member, the Committee
Meetings;

Terms and References:
In this Policy, the following terms shall have the following meanings:

3.1

Shall give his written consent to act as a
Director;

“Independent Director” means a director referred to in sub-section (6) of Section 149 of the Companies
Act, 2013 and Clause 49(II)(B) of the Equity Listing
Agreement.

4.

Such other requirements as may be prescribed, from time to time, under the Companies Act, 2013, Equity Listing
Agreements and other relevant laws.
4.1.4 The HRNR Committee shall evaluate each individual with the objective of having a group that best enables the success of the
Company’s business.

Policy:

4.1

Shall disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals including his shareholding at the first meeting of the Board in every financial year and thereafter whenever there is a change in the disclosures already made;

Qualifications and criteria

4.1.1 The Human Resources, Nomination and
Remuneration (HRNR) Committee, and the Board, shall review on an annual basis, appropriate skills, knowledge and experience required of the Board as a whole and its individual members. The objective is to have a Board with diverse background and experience that are relevant for the
Company’s global operations.

4.2

Criteria of Independence

4.2.1 The HRNR Committee shall assess the independence of Directors at the time of appointment / re-appointment and the Board shall assess the same annually. The Board shall re-assess determinations of independence when any new interests or relationships are disclosed by a Director.

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(B) any legal or a consulting firm that has or had any transaction with the company, its holding, subsidiary or associate company amounting to ten per cent or more of the gross turnover of such firm;

4.2.2 The criteria of independence, as laid down in Companies Act, 2013 and Clause 49 of the
Equity Listing Agreement, is as below:
An independent director in relation to a company, means a director other than a managing director or a whole-time director or a nominee director—
a.

who, in the opinion of the Board, is a person of integrity and possesses relevant expertise and experience;

(iii) holds together with his relatives two per cent or more of the total voting power of the company; or

b.

(i)

(iv) is a Chief Executive or director, by whatever name called, of any nonprofit organisation that receives twenty-five per cent or more of its receipts from the company, any of its promoters, directors or its holding, subsidiary or associate company or that holds two per cent or more of the total voting power of the company; or

who is or was not a promoter of the company or its holding, subsidiary or associate company;

(ii) who is not related to promoters or directors in the company, its holding, subsidiary or associate company;
c.

d.

e.

who has or had no pecuniary relationship with the company, its holding, subsidiary or associate company, or their promoters, or directors, during the two immediately preceding financial years or during the current financial year;

(v) is a material supplier, service provider or customer or a lessor or lessee of the company.

none of whose relatives has or had pecuniary relationship or transaction with the company, its holding, subsidiary or associate company, or their promoters, or directors, amounting to two per cent or more of its gross turnover or total income or fifty lakh rupees or such higher amount as may be prescribed, whichever is lower, during the two immediately preceding financial years or during the current financial year;

f.

g.

(i)

holds or has held the position of a key managerial personnel or is or has been employee of the company or its holding, subsidiary or associate company in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed;

(ii) is or has been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed, of—
(A) a firm of auditors or company secretaries in practice or cost auditors of the company or its holding, subsidiary or associate company; or

shall possess such other qualifications as may be prescribed, from time to time, under the Companies Act, 2013.

h.

who, neither himself nor any of his relatives— shall possess appropriate skills, experience and knowledge in one or more fields of finance, law, management, sales, marketing, administration, research, corporate governance, technical operations, corporate social responsibility or other disciplines related to the Company’s business.

who is not less than 21 years of age.

4.2.3 The Independent Directors shall abide by the
“Code for Independent Directors” as specified in Schedule IV to the Companies Act, 2013.
4.3

Other directorships / committee memberships

4.3.1 The Board members are expected to have adequate time and expertise and experience to contribute to effective Board performance.
Accordingly, members should voluntarily limit their directorships in other listed public limited companies in such a way that it does not interfere with their role as directors of the
Company. The HRNR Committee shall take into account the nature of, and the time involved in a Director’s service on other Boards, in evaluating the suitability of the individual
Director and making its recommendations to the Board.

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DIRECTORS’ REPORT (CONTINUED)
4.3.2 A Director shall not serve as Director in more than 20 companies of which not more than 10 shall be Public Limited Companies.

3.

Terms and References:
In this Policy, the following terms shall have the following meanings:

4.3.3 A Director shall not serve as an Independent
Director in more than 7 Listed Companies and not more than 3 Listed Companies in case he is serving as a Whole-time Director in any
Listed Company.

3.1

“Director” means a director appointed to the Board of the Ccompany.

3.2

“Key Managerial Personnel” means
(I)
(ii)

For the purpose of considering the limit of the Committees, Audit Committee and
Stakeholders’ Relationship Committee of all
Public Limited Companies, whether listed or not, shall be included and all other companies including Private Limited Companies, Foreign
Companies and Companies under Section 8 of the Companies Act, 2013 shall be excluded.

the whole-time director;

(iv)

the Chief Financial Officer; and

(v)
3.3

the company secretary;

(iii)

4.3.4 A Director shall not be a member in more than
10 Committees or act as Chairman of more than 5 Committees across all companies in which he holds directorships.

the Chief Executive Officer or the managing director or the manager;

such other officer as may be prescribed under the Companies Act, 2013

“Human
Resources,
Nomination and Remuneration Committee” means the committee constituted by RIL’s Board in accordance with the provisions of Section 178 of the Companies Act,
2013 and Clause 49 of the Equity Listing Agreement.

4.

ANNEXURE IIIB TO DIRECTORS’ REPORT
Remuneration Policy for Directors, Key
Managerial Personnel and other employees
1.
1.1

Introduction
Reliance Industries Limited (RIL) recognizes the importance of aligning the business objectives with specific and measureable individual objectives and targets. The Company has therefore formulated the remuneration policy for its directors, key managerial personnel and other employees keeping in view the following objectives:
1.1.1 Ensuring that the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate, to run the company successfully.
1.1.2 Ensuring that relationship of remuneration to performance is clear and meets the performance benchmarks.
1.1.3 Ensuring that remuneration involves a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the company and its goals.

2.
2.1

Scope and Exclusion:
This Policy sets out the guiding principles for the
Human Resources, Nomination and Remuneration
Committee for recommending to the Board the remuneration of the directors, key managerial personnel and other employees of the Company.

Policy:

4.1

Remuneration to Executive Directors and Key
Managerial Personnel

4.1.1 The Board, on the recommendation of the Human Resources, Nomination and
Remuneration (HRNR) Committee, shall review and approve the remuneration payable to the Executive Directors of the
Company within the overall limits approved by the shareholders.
4.1.2 The Board, on the recommendation of the
HRNR Committee, shall also review and approve the remuneration payable to the Key
Managerial Personnel of the Company.
4.1.3 The remuneration structure to the Executive
Directors and Key Managerial Personnel shall include the following components:
(i)

Basic Pay

(ii) Perquisites and Allowances
(iii) Stock Options
(iv) Commission (Applicable in case of
Executive Directors)
(v) Retiral benefits
(vi) Annual Performance Bonus
4.1.4 The Annual Plan and Objectives for Executive
Directors and Senior Executives (Executive
Committee) shall be reviewed by the HRNR
Committee and Annual Performance Bonus will be approved by the Committee based on the achievements against the Annual Plan and Objectives.

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4.2

Remuneration to Non-Executive Directors

4.2.1 The Board, on the recommendation of the
HRNR Committee, shall review and approve the remuneration payable to the NonExecutive Directors of the Company within the overall limits approved by the shareholders.
4.2.2 Non-Executive Directors shall be entitled to sitting fees for attending the meetings of the
Board and the Committees thereof. The NonExecutive Directors shall also be entitled to profit related commission in addition to the sitting fees.
4.3

Remuneration to other employees

4.3.1 Employees shall be assigned grades according to their qualifications and work experience, competencies as well as their roles and responsibilities in the organization.
Individual remuneration shall be determined within the appropriate grade and shall be based on various factors such as job profile, skill sets, seniority, experience and prevailing remuneration levels for equivalent jobs.

ANNEXURE IV TO DIRECTORS’ REPORT
Disclosures with respect to Employees Stock
Option Scheme of the Company
(a) Options granted - 5,98,47,502;
(b) Exercise Price – 5,74,56,000 options granted at an exercise price of ` 642 per option (adjusted for bonus issue); 54,000 options granted at an exercise price of
` 842 per option (adjusted for bonus issue); 20,16,000 options granted at an exercise price of ` 1,146 per option (adjusted for bonus issue); 1,00,200 options granted at an exercise price of ` 644.50 per option
(adjusted for bonus issue); 16,000 options granted at an exercise price of ` 995 per option; 19,200 options granted at an exercise price of ` 929 per option;
4,100 options granted at an exercise price of ` 972 per option; 18,000 options granted at an exercise price of ` 871 per option; 23,717 options granted at an exercise price of ` 847 per option; 15,000 options granted at an exercise price of ` 765 per option; 8,000 options granted at an exercise price of ` 715 per option; 60,866 options granted at an exercise price of
` 860 per option, 11,000 options granted at an exercise price of ` 880 per option, 21,367 options granted at an exercise price of ` 936 per option, 13,052 options granted at an exercise price of ` 960.65 per option and 11,000 options granted at an exercise price of
` 843.15 per option. The above exercise prices exclude all applicable taxes, as may be levied in this regard;
(c) Options vested – 3,72,27,053;
(d) Options exercised - 1,22,40,743;

(e) The total number of shares arising as a result of exercise of options – 1,22,40,743;
(f ) Options lapsed – 2,40,91,360;
(g) Variation in terms of options – Nil;
(h) Money realised
` 811,06,21,484;

by

exercise

of

options



(i)

Total number of options in force [(a) – (d) – (f )] –
2,35,15,399;

(j)

Employee wise details of options granted to: (i) Senior
Management Personnel: Shri Nikhil R. Meswani
– 14,00,000, Shri Hital R. Meswani - 14,00,000,
Shri P.M.S. Prasad - 10,00,000 and Shri P.K. Kapil –
1,00,000 (ii) Any other employee who received a grant in any one year of options amounting to 5% or more of options granted – Nil (iii) Identified employees who were granted options, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the
Company at the time of grant – Nil; and

(k) Basic and Diluted Earnings Per Share (EPS) before exceptional items pursuant to issue of shares on exercise of options calculated in accordance with
AS-20 ‘Earnings Per Share’ - ` 70.25. Based on alternate interpretation for calculation of Diluted EPS as per
AS-20, the diluted EPS is ` 70.09.

ANNEXURE V TO DIRECTORS’ REPORT
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015
[Pursuant to section 204(1) of the Companies Act,
2013 and rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members
Reliance Industries Limited
Maker Chambers IV,
222, Nariman Point,
Mumbai – 400 021
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Reliance Industries Limited
(hereinafter called the Company). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the
Company has, during the audit period covering the

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Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED) financial year ended on 31 March 2015 (‘Audit Period’) complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the
Company for the financial year ended on 31 March 2015 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956
(‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct
Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’): —
(a) The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
(b) The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,
1992;
(c) The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2009 (Not applicable to the
Company during the Audit Period);
(d) The Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999 and
The Securities and Exchange Board of India
(Share Based Employee Benefits) Regulations,
2014 notified on 28 October 2014;
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
(f ) The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and dealing with client;
(g) The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009
(Not applicable to the Company during the
Audit Period); and
(h) The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998 (Not applicable to the Company during the Audit
Period).
I have also examined compliance with the applicable clauses of the following:

(i)

Secretarial Standards issued by The Institute of Company Secretaries of India (Not notified hence not applicable to the Company during the audit period).
(ii) The Listing Agreements entered into by the
Company with Stock Exchanges.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above.
I further report that, having regard to the compliance system prevailing in the Company and on examination of the relevant documents and records in pursuance thereof, on test-check basis, the Company has complied with the following laws applicable specifically to the Company:
(a) Merchant Shipping Act, 1958 and Rules made thereunder; (b) Petroleum Act, 1934 and rules made thereunder;
(c) Oil Field (Regulation and Development) Act, 1948 read with Petroleum and Natural Gas (Safety in offshore Operations) Rules, 2008;
(d) The Mines Act, 1952 and Rules made thereunder.
I further report that
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the
Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in the minutes of the meetings of the Board of Directors or Committee of the Board, as the case may be.
I further report that there are adequate systems and processes in the Company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. I further report that during the audit period:
(a) the Company has made offering of Senior Unsecured
Notes priced under Rule 144A/Regulation S of the
Securities Act, 1933 (USA) aggregating US$ 1.75 billion; (b) the Company has redeemed non-convertible debentures aggregating ` 434.33 crore.
Dr. K R Chandratre

FCS No. 1370, C P No: 5144

Place: Mumbai
Date: April 17, 2015

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ANNEXURE VI TO DIRECTORS’ REPORT
Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo required under the Companies (Accounts) Rules, 2014

A. Conservation of Energy
(i) Steps taken for conservation of energy
Energy conservation dictates how efficiently a company can conduct its operations. RIL has recognized the importance of energy conservation in decreasing the deleterious effects of global warming and climate change. The Company has undertaken various energy efficient practices that have reduced the growth in carbon di-oxide (CO2) emissions and strengthened the Company’s commitment towards becoming an environment friendly organisation.
A dedicated ‘Energy Cell’ is focusing on energy management and closely monitor energy consumption pattern across all manufacturing sites.
Periodic energy audits are conducted to improve energy performance and benchmark with other international refineries and petrochemicals sites.
Major energy conservation initiatives taken during the FY 2014-15
Refining & Marketing
Jamnagar manufacturing division (DTA)
Installation of ‘Vacuum Distillation Unit’ off-gas scrubber and recovering additional heat from flue gas of crude heaters
Retrofitting heaters in Crude Distillation Unit
(CDU) with new air preheaters
Crude column overhead heat recovery
Efficiency improvement at Isomar unit
Reduction of operating Hydrogen/Hydro Carbon ratio at Isomar unit

Jamnagar manufacturing division (SEZ)
Use of sponge oil as a heating media in blow down reboiler of Coker in place of MP steam
Scanfiner heat recovery project for recovering heat from product
Stoppage of Vent Gas Recovery (VGR) compressor in SEZ polypropylene during low throughput scenario. Substituting flare seal drum purge gas from fuel gas to nitrogen
Petrochemicals
Hazira manufacturing division
Replacement of old chillers with new energy efficient chillers
Pyroblock installation in cracker furnaces to reduce heat loss
Line up of process flash steam from Pure
Terephthalic Acid (PTA) crystallizer to recovery column Efficiency improvement of Heat Recovery Steam
Generator (HRSG) by dry ice cleaning
Replacement of quench water pumps with high efficiency pumps
Heat recovery from Gasoline Hydrogenation Unit
(GHU) coolers to reduce LP steam consumption
Uprating of Cracker compressor
Installation of glycol jet ejector instead of steam ejector Replacing impeller of cracker Cooling Water (CW) pumps Installation of thermo compressor in butadiene plant Substituting fuel gas blanketing with nitrogen blanketing in push-pull system of naphtha splitter receiver

Vadodara manufacturing division
Cooling water pumping optimization by a combination of small and big pumps in Low
Density Polyethylene (LDPE) plant

Installation of new Medium Pressure (MP) steam generator for heat recovery from LCNO product circuit Optimization of stripping steam in Poly
Butadiene Rubber (PBR) Efficiency improvement of HRSG by dry ice cleaning

Switching steam turbine driven pump to motor drive and maintaining deaerator temperature at
123oC for Low Pressure (LP) steam optimization

Improved heat recovery from cycle water by installing additional shell in series

Switching of ‘High High Pressure Boiler Feed
Water (HHP BFW)’ turbo driven pump to motor drive to avoid LP steam dumping

Thermal efficiency improvement in Linear Alkyl
Benzene (LAB) hot oil heater by cleaning of Air
Pre-Heater (APH) and conventional coils

LP steam header pressure optimization in DTA

Preheat benzene clay tower feed for heat integration Isomer Benzene Column (IBC) feed preheat by lean solvent

Pyrogel insulation for HP steam header

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Dahej manufacturing division
Steam preheater taken in line at dryers to reduce fuel gas consumption
Importing power under Medium Term Open
Access (MTOA)
Intermediate Pressure (IP) steam supply to Vinyl
Chloride Monomer (VCM) Plant
Stoppage of refrigeration machine during leaner gas composition and low plant load at Ethane
Propane Recovery Unit (EPRU)
Running single amine circulation pump during leaner gas composition and low plant load at
Ethane Propane Recovery Unit (EPRU)
Replacing Ammonia chillers with new efficient chiller Patalganga manufacturing division
Reduced power and fuel consumption in reformate stripper of Para-Xylene plant by using smaller reflux pump
Other initiatives taken at various manufacturing divisions Replacement of conventional motors to energy efficient motors
Recycle of fly ash in pet-coke Dow vapouriser
Optimisation in operation of air compressors
Improving power factor by installing High
Tension (HT) capacitor bank
(ii) Steps taken by the Company for utilising alternate sources of energy
Hybrid digester converted to Up flow Anaerobic
Sludge Blanket (UASB) reactor at Hazira

Nagothane manufacturing division
LP condensate heat recovery in Cracker

Solar Photovoltaic (PV) for canteen building at
Jamnagar

Provision of cracker off gas line directly to High
Pressure (HP) knock out drum of power plant for gas turbine

Solar Photovoltaic system of 34.8 kWp installed for internal consumption at RIL (Exploration &
Production) Shore based complex at Kakinada

Increasing the area of regeneration gas feedeffluent heat exchanger for increased heat recovery in Cracker

Anaerobic digester for processing of 3 TPD canteen waste to generate biogas and organic manure is commissioned at Reliance Corporate
Park

Replacement of old cooling water pumps with high efficiency pumps

(iii) The capital investment on energy conservation equipment
Sr.
Manufacturing Division
No.
(I)

Capital investments on energy conservation equipment’s (` in crore)

Energy savings
(Gcal/hr)

Financial saving
(` in crore per Annum)

Refining & Marketing
1

68.72

30.51

101.50

2
(II)

Jamnagar manufacturing division (DTA)
Jamnagar manufacturing division (SEZ)

14.73

14.99

49.80

169.52

30.87

117.36

Petrochemicals
3

Hazira manufacturing division

4

Vadodara manufacturing division

3.55

4.78

11.27

5

Dahej manufacturing division

5.90

47.27

69.33

6

Nagothane manufacturing division

2.79

9.33

29.49

7

Patalganga manufacturing division

0.10

0.52

3.41

8

Other manufacturing divisions

2.18

2.69

9.01

The Company has also made capital investment in its Hazira manufacturing division for utilising alternate sources of energy to the extent of ` 2.9 crores resulting in to energy savings of 1.10 Gcal/hr and financial savings of ` 1.10 crores.

02-45

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Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Directors’ Report

B. Technology Absorption
Reliance Technology Group (RTG), RIL’s integrated central research & technology unit that helps create superior value by harnessing internal research and development skills and competencies and by innovating in emerging technology domains related to RIL’s various businesses. RTG focuses on (i) new products, processes and catalyst development to support existing business and create breakthrough technologies for new businesses (ii) advanced troubleshooting, and (iii) support to capital projects, and profit and reliability improvements in manufacturing plants.
(i)

Major efforts made towards technology absorption Refining & Marketing
New coking research facilities to carry out research projects for upgrading refinery residue streams Hydroprocessing research facilities to carry out research projects to upgrade intermediate and final products in petroleum refinery
Development of in-house Vacuum Gas oil (VGO) hydroprocessing catalyst
Development of a new coking additive to increase liquid product yields
A new process for Total Acid Number (TAN) reduction in crude and kerosene products
Addition of facilities like desalter pilot plant and extractive distillation pilot unit to boost crude processing research capability
New analytical techniques for rapid crude characterization and molecule-based modeling and optimization of intra-refinery streams and processes CO2 capture from refinery flue gases and its utilization to make chemicals
Development of catalyst and processes for gasification of petroleum coke/biomass at moderate temperature
In Fluid Catalytic Cracking (FCC), a new process technology for generating very high olefin yields from lower-value feedstock
High stability catalyst additive for maximizing petrochemicals co-production in FCC
The use of feed properties and operating conditions to optimize petroleum coke quality
Determination of crude corrosion potential and requisite mitigation
Removal of heat stable salts and sodium from refinery streams
Technology development to process low-cost, heavy crudes

New catalytic cracking technology for high light olefin yields from low value hydrocarbon streams
Development of composition based reactor models for VGO hydrotreating
Reliability
improvement and capacity augmentation of coker unit through cost effective revamp
Crude debottlenecking and crude window widening through installation of third vacuum distillation unit
Cycle oil manufacturing from Clarified Slurry Oil
(CSO)
Isotherming technology evaluation for VGO processing for sweet VGO quality improvement with capacity enhancement
Refinery wide optimiser development in KBC
Petrosim
Debottlenecking the existing crude de-salters.
Revamp of FCC naphtha splitter for improving performance Trails planned for RMP5, an additive developed by R&D for propylene maximization
Molecular characterization of VGO hydrotreating feed streams
Stream-wise value addition to low value refinery streams Selection and pilot plant studies for improved catalysts for transalkylation
Petrochemicals
Blow molding polyethylene grade by inhouse catalyst system
High melt flow impact polypropylene copolymer grade development
Styrene-butadiene rubber process-structure relationship and process improvement
Polybutadiene rubber process and performance improvement Polypropylene fiber composite development
Halogenated butyl rubber derivative studies and development Regeneration of adsorbents for olefins removal from aromatic streams
Scale up of new polyester packaging material to extend the shelf life of fruits and vegetables
Development of adsorbent for recovery of paraxylene from C8 stream
Catalyst for nitrogen purification
New process for butadiene production
Scale up of chlorination process for new products
Development of super absorbent polymers

177

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Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Additive development for coke reduction on thermal cracking
Development of new ethylene based polymers
Development of homogeneous catalyst and process for polyolefin
High performance oriented polyolefin products for niche applications
High performance polyethylene grades for packaging and transport
Improvement and innovation for in-house catalysts with higher efficiency (activity, and throughput) for producing polypropylene
In-house production of 1-butene catalyst
Metallocene grade polyethylene production
High flow polypropylene grades for melt blown film applications
Development of high flow polypropylene random copolymer grades for thin wall injection molding applications
Production of slurry based polypropylene impact copolymer grades for sheet extrusion & automotive applications
Chemical Composition Distribution (CCD) of
Polyolefins using CRYSTAF-TREF
Capacity augmentation of polypropylene plants
Flexible intermediate bulk container (FIBC) loading machines installation in Polyolefin plants
Installation of Sea-Bulk loading facility in polypropylene plant at Jamnagar
Various Fully Drawn Yarn (FDY) products using alternate polyester Scale-up of alternate crosssection Partially Oriented Yarn (POY)/FDY
Development of alternate cross section fibre for improving characteristics
Development of polyester staple fibre as replacement of other synthetic fibres
Design spinnerets to produce products of specific requirements and increase productivity
Research on additives for fibers with better comfort properties
Fibers for reinforcement of different kinds of matrix materials
High performance carbon nanotube fibers
Development of alternative ReHeat (RH) additive for PET bottles applications mainly for productivity enhancement during blow molding process Development of alternative phosphorous compound for PET bottles applications
Development of slow crystallizing PET resin for
20 litres containers applications

Development of alternative de-lustering additives for partial replacement of TiO2 in polyester fiber applications
Development of barrier PET resin for packaging oxygen sensitive foods and beverages
Development of UV blocking PET resin for packaging applications
Development of PET resin for thin walled injection moulding applications
Development of extrusion blow mouldable grade of PET having high melt strength
Development of UV resistant PET fiber
Development of PET fibres for non-woven application Indigenous development of catalyst for heavy metal catalyst replacement in PET.
Development of bicomponent polyester yarns
Polyester recycling initiatives for diverse end uses & polyester waste recycling to improve carbon foot print
Development of bio-based process for recovering
PET from textile PET/ blends
Biofuels and Biochemicals
Development of ‘Green Bio crude’ from algae using sea water, sunlight and low cost nutrients
Development of high yielding biofuel hybrid crops Development of high yielding, waste land based non-edible crops for large scale cultivation for production of biofuels/chemicals
In house research and external technology for converting abundantly available cellulosic biomass in India to fuels and chemicals
Application of biotechnology to enhance the productivity of biofuels species
Testing the best hybrids produced by us and others at different agro-climatic zones to identify most productive cultivators
Popularizing the cultivation of bio-fuel crops by growers by conducting method and varietal demonstrations Genetic modifications, high throughput screening and metabolic flux analysis for biomolecule production
Health, Safety and Environment
Separation of olefins from coker gas oil for LAB production Hydroisomerization catalyst for diesel production and low pressure, ultra-low sulphur diesel hydrotreating catalyst
Purification of normal olefins from coker gas oil for LAB production

02-45

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Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Directors’ Report

Gasoline upgradation by benzene recovery unit / extract hydrotreater and scanfining unit

Other R&D activities across multiple business
Computational fluid dynamics studies for trouble shooting plant operations

Sulfur based polymers development for concrete applications Advance Process Control (APC) and Real Time
Optimisation (RTO)

Development of high stability paraffin dehydrogenation catalyst for LAB production

Comparative evaluation and benchmarking of various technologies

Development of non-hydrofluoric acid LAB manufacturing process that eliminates Hydro
Fluoric (HF)

Development of reactor models in various refinery/petrochemicals plants

(ii) The benefits derived like product improvement, cost reduction, product development or import substitution The potential benefits derived from R&D and Technology absorption, adoption and innovation initiatives in
FY 2014-15 is approximately ` 340 crore / annum.
(iii) Information regarding imported technology (Imported during last three years)
Details of technology imported

Technology import from

Ethylene (Cracker) – Ethane feed flexibility project
Synthetic natural gas (SNG)
Hydrotreatment of extract
High purity isobutylene
Paraxylene (PX)
Isobutylene Isoprene Rubber (IIR)
ROGC (refinery off-gas cracker) for production of ethylene & propylene
Mono Ethylene Glycol (MEG)

Technip, Houston

Year of import 2014-15

Johnson Matthey, UK
Axens, France

2014-15
2014-15

Linear Low Density Polyethylene Project
Low Density Polyethylene Project
Air separation unit for oxygen production
Petcoke gasification for syngas
Acid gas recovery for cleaning syngas
Scanfiner project
Partially Oriented Yarn/Fully Drawn Yarn
(POY/FDY)
Polyethylene Terephthalate (PET)

Particulars

a)
b)

Plant under design and construction
Plant under construction

2013-14

Plant under design and construction

Lummus

2012-13

Plant under construction

Sibur, Russia

2012-13

Plant under design and construction

Technip, France

2012-13

Plant under design and construction

DOW Process
Technologies, USA
Univation Technologies
LLC, USA
LyondellBasell, Germany

2012-13

Plant under design and construction

2012-13

Plant under design and construction

2012-13

Plant under design and construction

Linde - Germany

2012-13

Plant under design and construction

P66 – USA

2012-13

Plant under design and construction

Linde - Germany

2012-13

Plant under design and construction

ExxonMobil Research &
Engineering ,USA
Invista/Chemtex/Barmag/TMT

2012-13

Plant under construction

2011-13

Plant commissioned

Invista/Chemtex/Buhler

2011-13

Plant commissioned

considerations. During the year, the Company has exports (FOB value) worth ` 2,09,169 crore
($ 33,467 million).

Amount
(` in crore)

Capital
Revenue
Total

722
498
1,220

C. Foreign exchange Earnings and Outgo1.

eBEP phase in progress

CB&I - Lummus

(iv) Expenditure incurred on research and development
Sr. No.

Status implementation / absorption

Activities relating to export, initiatives to increase exports, Developments of New export markets for
Products and Services and Export Plan.
The Company has continued to maintain focus and avail of export opportunities based on economic

2.

Total Foreign exchange Earned and Used
` in crore

Foreign Exchange earned in terms of
Actual Inflows
Foreign Exchange outgo in terms of
Actual Outflows

2,09,398
2,65,640

Note: Actual inflows does not includes total savings in Foreign Exchange through products manufactured by the Company and deemed Exports is
` 92,733 crore ($ 14,837 million)

179

180

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
ANNEXURE VII TO DIRECTORS’ REPORT
Form No. MGT-9

EXTRACT OF ANNUAL RETURN as on the financial year ended on March 31, 2015
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration)
Rules, 2014]
I.

REGISTRATION AND OTHER DETAILS

i) ii) iii) iv) v)

CIN
Registration Date
Name of the Company
Category / Sub-Category of the Company
Address of the Registered office and contact details

vi) vii) Whether listed company
Name, Address and Contact details of Registrar and Transfer Agent, if any

II.

L17110MH1973PLC019786
08-05-1973
Reliance Industries Limited
Public Company / Limited by shares
3rd Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
Tel: +91 22 22785000
Fax:+91 22 22785111
Yes / No
Karvy Computershare Private Limited
Karvy Selenium Tower B
Plot 31-32, Gachibowli, Financial District
Nanakramguda, Hyderabad – 500 032
Tel: +91 40 67161700
Toll Free No:1800 425 8998
Fax: +91 40 23114087

PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company

III.
IV.
i) ii) iii) iv) v)

V.

As per Attachment A

PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE
COMPANIES
SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS
PERCENTAGE OF TOTAL EQUITY)

As per Attachment B

Category-wise Share Holding
Shareholding of Promoters
Change in Promoters’ Shareholding
Shareholding Pattern of top ten Shareholders (other than Directors,
Promoters and Holders of GDRs and ADRs)
Shareholding of Directors and Key Managerial Personnel
INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment

As per Attachment C
As per Attachment D
As per Attachment E
As per Attachment F

VI.

Remuneration to Managing Director, Whole-time Directors and/or Manager
Remuneration to other directors
Remuneration to Key Managerial Personnel other than MD/MANAGER/WTD

As per Attachment H

REMUNERATION OF DIRECTORS AND KEY MANAGERIAL
PERSONNEL

A.
B.
C.

As per Attachment G

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES

As per Attachment I
As per Attachment J
As per Attachment K
As per Attachment L

02-45

46-103

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Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Directors’ Report

ATTACHMENT A
II. PRINCIPAL BUSINESS ACTIVITES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company are given below :Sl. No. Name and Description of main products/services
1

% to total turnover of the company #

192- Manufacture of refined petroleum products 201-Manufacture of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms

Refining

2

NIC Code of the product/service *

Petrochemicals

75.91%
22.43%

* As per National Industrial Classification – Ministry of Statistics and Programme Implementation
# On the basis of Gross Turnover

ATTACHMENT B
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Sr.
Name of Company
No.
1

2

Affinity Names, Inc

Holding /
Subsidiary /
Associate

% of
Shares
held*

Applicable section NA

Subsidiary

100.00

2(87)(ii)

U51101MH2007PTC171320

Subsidiary

100.00

2(87)(ii)

Unit No. 1801-B, JBC 3,
Plot No JLT-PH2-Y1A,
Jumeirah Lakes Towers, Dubai U.A.E

NA

Subsidiary

100.00

2(87)(ii)

3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai- 400002

U51101MH2007PTC171372

Subsidiary

100.00

2(87)(ii)

L. R. No.1870 / II /236, The Pride Rock,
No. 6, Donyo Sabuk Avenue, Off General
Mathenge Drive, P.O. Box 69952- 00400,
Nairobi

NA

Subsidiary

58.80

2(87)(ii)

Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.

NA

Subsidiary

100.00

2(87)(ii)

Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.

NA

Subsidiary

100.00

2(87)(ii)

Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.

NA

Subsidiary

100.00

2(87)(ii)

Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.

NA

Subsidiary

100.00

2(87)(ii)

Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.

NA

Subsidiary

100.00

2(87)(ii)

Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.

NA

Subsidiary

100.00

2(87)(ii)

L. R. No. 209/10357,
Nation Centre, Kimathi Street,
P.O Box 40908, 00100 Nairobi

N.A.

Subsidiary

100.00

2(87)(ii)

Address of Company
Capitol Services, Inc.
1675 S. State Street,
Suite B, Dover,
Delaware 19901

Bhagyashri Mercantile Private Limited 3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao Mumbai- 400002

3

4

5

6

7

8

9

10

11

12

CIN/GLN

Central Park Enterprises DMCC

Chitrani Mercantile Private Limited

Delta Corp East Africa Limited

Ethane Crystal LLC

Ethane Emerald LLC

Ethane Opal LLC

Ethane Pearl LLC

Ethane Sapphire LLC

Ethane Topaz LLC

Gapco Kenya Limited

181

182

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Sr.
Name of Company
No.
13

14

Gapco Tanzania Limited

Gapco Uganda Limited

Address of Company

CIN/GLN

Holding /
Subsidiary /
Associate

% of
Shares
held*

Applicable section P.O Box No. 9103,
Mafuta Street, Kurasini,
DAR ES SALAM, Tanzania

N.A.

Subsidiary

100.00

2(87)(ii)

Plot 13, 7th Street,
Industrial Area, P O Box 7105,
Kampala, Uganda

N.A.

Subsidiary

100.00

2(87)(ii)

15

Gapoil (Zanzibar) Limited

Plot No.1282 Zanzibar

N.A.

Subsidiary

100.00

2(87)(ii)

16

Gopesh Commercials Private Limited

3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai- 400002

U52599MH2007PTC168165

Subsidiary

100.00

2(87)(ii)

17

Gulf Africa Petroleum Corporation

IFS Court, Twenty Eight,
Cybercity, Ebene, Mauritius

N.A.

Subsidiary

76.00

2(87)(ii)

18

Indiawin Sports Private Limited

3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400002

U51109MH2007PTC176254

Subsidiary

100.00

2(87)(ii)

5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400002

U52599MH2007PLC176414

Subsidiary

72.00

2(87)(ii)

Resolute Land Consortium Projects
Limited (Formerly known as Model
Economic Township Limited)

3rd Floor, 77-B,
IFFCO Road, Sector-18,
Gurgaon - 122015

U45400HR2007PLC037102

Subsidiary

100.00

2(87)(ii)

Nemita Commercials Private Limited

5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao Mumbai- 400002

U52599MH2007PTC168247

Subsidiary

100.00

2(87)(ii)

5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao Mumbai- 400002

U51101MH2007PTC168203

Subsidiary

100.00

2(87)(ii)

U36991MH1999PTC119874

Subsidiary

100.00

2(87)(ii)

5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai- 400002

U51909MH2007PTC168523

Subsidiary

100.00

2(87)(ii)

Level 7, Wisma Goldhill,
67, Jalan Raja Chulan,
50200 Kuala Lumpur, Malaysia

NA

Subsidiary

100.00

2(87)(ii)

Reliance Aerospace Technologies
Limited

9th Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai - 400 021

U35300MH2008PLC186471

Subsidiary

100.00

2(87)(ii)

Reliance Ambit Trade Private Limited

4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400021

U01119MH2006PTC162902

Subsidiary

100.00

2(87)(ii)

U23200MH1993PLC190934

Subsidiary

100.00

2(87)(ii)

5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai – 400 002

U51900MH2007PLC174470

Subsidiary

89.98

2(87)(ii)

9th Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai - 400 021

U24110MH1990PLC059590

Subsidiary

100.00

2(87)(ii)

U17120MH2008PTC180384

Subsidiary

100.00

2(87)(ii)

19

20

21

22

23

Kanhatech Solutions Limited

Nisarga Commercials Private Limited

Office Depot Reliance Supply Solutions 5th Floor, Court House,
Lokmanya Tilak Marg,
Private Limited
Dhobi Talao, Mumbai- 400002

24

25

26

27

28

Prakruti Commercials Private Limited

Recron (Malaysia) Sdn Bhd

Reliance Aromatics and Petrochemicals 9th Floor, Maker Chambers IV,
222 Nariman Point,
Limited
Mumbai - 400 021

29

30

31

Reliance Brands Limited

Reliance Chemicals Limited

Reliance Clothing India Private Limited Court House, 3rd Floor,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400002

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Directors’ Report

Sr.
Name of Company
No.
32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

Address of Company

CIN/GLN

Holding /
Subsidiary /
Associate

% of
Shares
held*

Applicable section Reliance Commercial Land &
Infrastructure Limited

4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400002

U51109MH2008PLC185389

Subsidiary

100.00

2(87)(ii)

Reliance Comtrade Private Limited

4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400002

U52599MH2006PTC164458

Subsidiary

100.00

2(87)(ii)

Reliance Corporate Park, Building No.4, 5
TTC Industrial Area, Thane- Belapur Road,
Ghansoli, Navi Mumbai – 400 701.

U74140MH2001PLC131458

Subsidiary

100.00

2(87)(ii)

NA

Subsidiary

100.00

2(87)(ii)

Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware -19901

NA

Subsidiary

100.00

2(87)(ii)

Capitol Corporate Services, Inc.
800 Brazos, Suite 400,
Austin, Texas 78701

NA

Subsidiary

100.00

2(87)(ii)

Reliance Eagleford Upstream Holding
LP

Capitol Corporate Services, Inc.
800 Brazos, Suite 400,
Austin, Texas 78701

NA

Subsidiary

100.00

2(87)(ii)

Reliance Eagleford Upstream LLC

Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware-19901

NA

Subsidiary

100.00

2(87)(ii)

Reliance Eminent Trading &
Commercial Private Limited

Raman Rati Apartment,
Near Ashapura Hotel, Saru Section Road,
Jamnagar- 361002

U51100GJ2005PTC046538

Subsidiary

100.00

2(87)(ii)

Reliance Energy and Project
Development Limited

9th Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai - 400 021

U45201MH1993PLC190935

Subsidiary

100.00

2(87)(ii)

Reliance Energy Generation and
Distribution Limited

4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400002

U40108MH2008PLC185326

Subsidiary

100.00

2(87)(ii)

Reliance Ethane Holding
Pte Limited

250 North Bridge Road,
#16-01, Raffles City Tower
Singapore -179101

NA

Subsidiary

100.00

2(87)(ii)

Reliance Exploration & Production
DMCC

Unit No. 1801-A, JBC 3,
Plot No JLT-PH2-Y1A
Jumeirah Lakes Towers, Dubai U.A.E

NA

Subsidiary

100.00

2(87)(ii)

Reliance Gas Pipelines Limited

9th Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai – 400 021

U60300MH1991PLC059678

Subsidiary

100.00

2(87)(ii)

Claude Debussylaan 18,
1082 MD Amsterdam,
Netherlands

NA

Subsidiary

100.00

2(87)(ii)

4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400002

U24230MH1999PLC121318

Subsidiary

100.00

2(87)(ii)

Reliance Global Energy Services
(Singapore) Pte Limited

250 North Bridge Road,
#16-01 Raffles City Tower,
Singapore-179101

NA

Subsidiary

100.00

2(87)(ii)

Reliance Global Energy Services
Limited

8th Floor, 105 Wigmore Street,
London W1U 1QY,
United Kingdom

NA

Subsidiary

100.00

2(87)(ii)

Reliance Corporate IT Park Limited

Reliance do Brasil Industria e Comercio Rua Antonio Loureiro, No. 346, Sala 8,
CEP 04376-110, Vila Santa Catarina, de Produtos Texteis, Qumicios,
São Paulo, Brazil
Petroqumicios e Derivados Ltda.
Reliance Eagleford Midstream LLC

Reliance Eagleford Upstream GP LLC

Reliance Global Business B.V.

Reliance Global Commercial Limited

183

184

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Sr.
Name of Company
No.
50

51

52

53

% of
Shares
held*

Applicable section U70109HR2006PLC036416

Subsidiary

100.00

2(87)(ii)

CIN/GLN

Model Economic Township Limited
(Formerly known as Reliance Haryana
SEZ Limited)

3rd Floor, 77-B, IFFCO Road,
Sector-18, Gurgaon-122015

Reliance Holdings USA, Inc

Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware-19901

NA

Subsidiary

100.00

2(87)(ii)

9th Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai – 400 021

U65910MH1986PLC041081

Subsidiary

100.00

2(87)(ii)

NA

Subsidiary

100.00

2(87)(ii)

U52100MH2007PTC174895

Subsidiary

100.00

2(87)(ii)

Reliance Industrial Investments and
Holdings Limited

Reliance Industries (Middle East) DMCC Unit No. 1801, Jumeirah,
Business Centre 3, Plot No. Y 1,
Jumeirah Lakes Towers, Dubai, U.A.E

54

Holding /
Subsidiary /
Associate

Address of Company

Reliance Innovative Building Solutions 4th Floor, Court House,
Lokmanya Tilak Marg,
Private Limited
Dhobi Talao, Mumbai-400 002

55

56

57

58

59

60

61

62

63

64

65

66

67

Reliance Jio Digital Services Private
Limited

9th Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai-400021

U72900MH2013PTC239846

Subsidiary

99.84

2(87)(ii)

Reliance Jio Global Resources LLC

5600, Tennyson Parkway,
Suite 115, Plano,
Texas-75025

NA

Subsidiary

100.00

2(87)(ii)

3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai-400021

U72900MH2007PLC234712

Subsidiary

99.16

2(87)(ii)

250 North Bridge Road, #16-01,
Raffles City Tower,
Singapore-179101

NA

Subsidiary

100.00

2(87)(ii)

8th Floor, 105 Wigmore Street,
London, United Kingdom,
W1U 1Qy

NA

Subsidiary

100.00

2(87)(ii)

Capitol Corporate Services, Inc.,
800 Brazos, Suite 400,
Austin, Texas-78701.

NA

Subsidiary

100.00

2(87)(ii)

3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai - 400 021

U92100MH2013PTC239849

Subsidiary

100.00

2(87)(ii)

U32204MH2013PTC239944

Subsidiary

100.00

2(87)(ii)

5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai – 400 002

U01403MH2007PLC172415

Subsidiary

100.00

2(87)(ii)

Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware -19901

NA

Subsidiary

100.00

2(87)(ii)

Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware -19901

NA

Subsidiary

100.00

2(87)(ii)

Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware -19901

NA

Subsidiary

100.00

2(87)(ii)

5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400002

U65923MH2007PLC173923

Subsidiary

100.00

2(87)(ii)

Reliance Jio Infocomm Limited

Reliance Jio Infocomm Pte Limited

Reliance Jio Infocomm UK Limited

Reliance Jio Infocomm USA Inc

Reliance Jio Media Private Limited

Reliance Jio Messaging Private Limited 9th Floor, Maker Chambers IV,
222, Nariman Point, Mumbai - 400021
(Formerly known as Reliance Jio
Electronics Private Limited)
Reliance Lifestyle Holdings Limited

Reliance Marcellus Holding, LLC

Reliance Marcellus II LLC

Reliance Marcellus LLC

Reliance Payment Solutions Limited

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Directors’ Report

Sr.
Name of Company
No.
68

69

70

71

72

73

Address of Company

75

76

77

78

79

81

82

100.00

2(87)(ii)

9th Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai – 400 021

U72900MH1999PLC121039

Subsidiary

100.00

2(87)(ii)

9th Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai - 400 021

U99999MH1992PLC065847

Subsidiary

100.00

2(87)(ii)

Reliance Progressive Traders Private
Limited

Raman Rati Apartment,
Near Ashapura Hotel,
Saru Section Road, Jamnagar- 361002

U51100GJ2005PTC046466

Subsidiary

100.00

2(87)(ii)

Reliance Prolific Commercial Private
Limited

4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400002

U01122MH2006PTC161600

Subsidiary

100.00

2(87)(ii)

U51100GJ2005PTC046464

Subsidiary

100.00

2(87)(ii)

9th Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai – 400 021

U17110MH2000PLC123731

Subsidiary

100.00

2(87)(ii)

Reliance Retail Insurance Broking
Limited

3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400002

U67200MH2006PLC165651

Subsidiary

100.00

2(87)(ii)

Reliance Retail Limited

3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai -400002

U01100MH1999PLC120563

Subsidiary

99.95

2(87)(ii)

4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400002

U51909MH2006PLC166166

Subsidiary

94.45

2(87)(ii)

Admin Building, MTF Area,
Village Sikka,
Taluka & District Jamnagar - 361140

U25209GJ2012PTC068867

Subsidiary

74.90

2(87)(ii)

U65990MH1999PLC120918

Subsidiary

100.00

2(87)(ii)

Plot No. 384/2, Near Abhishek Complex,
Opp. Amola Chambers, C.G. Road,
Ahmedabad - 380009

U17291GJ2015PLC082664

Subsidiary

100.00

2(87)(ii)

3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai -400002

U51909MH2006PLC166165

Subsidiary

100.00

2(87)(ii)

U15300MH1999PLC123315

Subsidiary

100.00

2(87)(ii)

U51100MH2005PLC190767

Subsidiary

100.00

2(87)(ii)

Reliance Petroinvestments Limited

Reliance Polyolefins Limited

Reliance Prolific Traders Private Limited Raman Rati Apartment,

Reliance Retail Finance Limited

Reliance Retail Ventures Limited

Reliance Sibur Elastomers Private
Limited

Reliance Strategic Investments Limited 9th Floor, Maker Chambers IV,

Reliance Textiles Limited

Reliance Trading Limited

Reliance Universal Commercial Limited 4th Floor, Court House,

Reliance Universal Enterprises Limited 9th Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai – 400 021

84

85

Applicable section Subsidiary

Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400002

83

% of
Shares
held*

U74210MH1999PLC120377

222, Nariman Point,
Mumbai – 400 021

80

Holding /
Subsidiary /
Associate

5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400002

Reliance Petro Marketing Limited

Near Ashapura Hotel,
Saru Section Road, Jamnagar- 361002

74

CIN/GLN

Reliance Universal Traders Private
Limited

Raman Rati Apartment,
Near Ashapura Hotel, Saru Section Road,
Jamnagar- 361002

U51100GJ2005PTC046467

Subsidiary

100.00

2(87)(ii)

Reliance USA Gas Marketing LLC

Capitol Services, Inc.
1675 S. State Street, Suite B,
Dover, Delaware 19901

NA

Subsidiary

100.00

2(87)(ii)

185

186

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Sr.
Name of Company
No.
86

87

88

89

Reliance Vantage Retail Limited

Reliance Ventures Limited

Reliance World Trade Private Limited

Address of Company

91

92

Holding /
Subsidiary /
Associate

% of
Shares
held*

Applicable section 1st Floor, High Street,Shrimali Society,
Near Navrangpura Railway Crossing,
Navrangpura, Ahmedabad , Gujarat 380009

U51109GJ2007PLC049968

Subsidiary

100.00

2(87)(ii)

9th Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai – 400 021

U24120MH1999PLC121009

Subsidiary

100.00

2(87)(ii)

Avdesh House, 3rd Floor,
Pritam Nagar, 1st Slope,
Ellisbridge, Ahmedabad - 380006

U51100GJ1994PTC021590

Subsidiary

100.00

2(87)(ii)

U51900MH2007PTC175638

Subsidiary

100.00

2(87)(ii)

Kennedy & Co,
140 Greenhill Road,
Unley, SA, 5061

NA

Subsidiary

100.00

2(87)(ii)

Corporation Service Company, 2711,
Centerville Road, Suite 400,
Wilmington, Delaware, USA

NA

Subsidiary

100.00

2(87)(ii)

U74999MH2007PLC167704

Subsidiary

100.00

2(87)(ii)

Reliance-GrandOptical Private Limited Dhobitalao, 5th Floor, Court House,
Lokmanya Tilak Marg,
Mumbai - 400002

90

CIN/GLN

RIL (Australia) Pty Limited

RIL USA, Inc

Strategic Manpower Solutions Limited 3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400002

Surela Investment & Trading Private
Limited

Swadeshi Complex, Tower 2,
Swadeshi Mills Road,
Chunabhatti (East), Mumbai - 400022

U65990MH1986PTC041221

Subsidiary

100.00

2(87)(ii)

Transenergy (Kenya) Limited

14th Floor, Nation Centre,
Kimathi Street,
P O Box 40908, 00100 Nairobi

N.A.

Subsidiary

100.00

2(87)(ii)

5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai- 400002

U52599MH2007PTC168204

Subsidiary

100.00

2(87)(ii)

L. R. No. 1870 / II /236, The Pride Rock,
No. 6, Donyo Sabuk Avenue, Off General
Mathenge Drive, P.O. Box 69952- 00400,
Nairobi

NA

Subsidiary

100.00

2(87)(ii)

Gujarat Chemicals Port Terminal
Company Limited

PO Lakhigam, Via Dahej,
Tal. - Vagra,
Dist.- Bharuch-392130

U99999GJ1992PLC017798

Associate

41.80

2(6)

Indian Vaccines Corporation Limited

Village Manesar,
Delhi-Jaipur Highway (N.H.8)
P.O. Manesar, Distt, Gurgaon, Haryana

U74900HR1989GOI030516

Associate

33.33

2(6)

Devonshire House, 60,
Goswell Road,
London, EC1M 7AD

NA

Associate

50.00

2(6)

100 Reliance Industrial Infrastructure
Limited

NKM International House,
5th Floor, 178 Backbay Reclamation,
Behind LIC Yogakshema Building,
Babubhai Chinai Road, Mumbai - 400 020

L60300MH1988PLC049019

Associate

45.43

2(6)

101 Reliance LNG Limited

4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai - 400002

U23203MH2000PLC127885

Associate

45.00

2(6)

93

94

95

96

97

98

99

*

Vijayant Commercials Private Limited

Wave Land Developers Limited

Reliance Europe Limited

Representing aggregate % of shares held by the Company and/or its subsidiaries

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

187

Directors’ Report

ATTACHMENT C
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i)

Category-wise Share Holding

Category of Shareholders

No. of Shares held at the beginning of the year
(As on 01-04-2014)
Demat

A

Physical

No. of Shares held at the end of the year
(As on 31-03-2015)

% of total shares Total

Demat

Physical

% of total shares Total

% of change during the year PROMOTERS

(1)

Indian
a)

Individual / HUF

2,11,72,646

0

2,11,72,646

0.66

2,11,72,646

0

2,11,72,646

0.65

-0.01

b)

Central Govt.

0

0

0

0.00

0

0

0

0.00

0.00

c)

State Govt(s)

0

0

0

0.00

0

0

0

0.00

0.00

1,32,23,18,328

0

1,32,23,18,328

40.91

1,32,23,18,328

0

1,32,23,18,328

40.87

-0.04

0

0

0

0.00

0

0

0

0.00

0.00

12,04,71,003

0

12,04,71,003

3.73

12,04,71,003

0

12,04,71,003

3.72

-0.01

1,46,39,61,977

0

1,46,39,61,977

45.30

1,46,39,61,977

0

1,46,39,61,977

45.24

-0.06

d)

Bodies Corporate

e)

Banks / FI

f)

Any other…

(f-i) Petroleum Trust (through
Trustees for sole beneficiary- M/s Reliance
Industrial Investments and
Holdings Ltd.)
SUB -TOTAL (A) (1)
(2)

Foreign

a)

NRIs - Individuals

0

0

0

0.00

0

0

0

0.00

0.00

b)

Other - Individuals

0

0

0

0.00

0

0

0

0.00

0.00

c)

Bodies Corporate

0

0

0

0.00

0

0

0

0.00

0.00

d)

Banks / FI

0

0

0

0.00

0

0

0

0.00

0.00

(e)

Any other…

0

0

0

0.00

0

0

0

0.00

0.00

SUB -TOTAL (A) (2)

0

0

0

0.00

0

0

0

0.00

0.00

1,46,39,61,977

0

1,46,39,61,977

45.30

1,46,39,61,977

0

1,46,39,61,977

45.24

-0.06

6,72,43,426

3,96,993

6,76,40,419

2.09

7,48,16,598

3,94,097

7,52,10,695

2.32

0.23

0.12

39,85,589

2,17,107

42,02,696

0.13

0.01

TOTAL SHAREHOLDING
OF PROMOTER (A) = (A)(1)
+ (A)(2)
B

PUBLIC SHAREHOLDING

1

Institutions
a)

Mutual Funds

b)

Banks / FI

36,50,069

2,17,684

38,67,753

c)

Central Govt

16,80,824

17,23,069

34,03,893

0.11

21,92,664

16,62,549

38,55,213

0.12

0.01

d)

State Govt(s)

93,600

2,072

95,672

0.00

93,600

2,072

95,672

0.01

0.01

e)

Venture Capital Funds

0

0

0

0.00

0

0

0

0.00

0.00

f)

Insurance Companies

28,80,49,778

6,348

28,80,56,126

8.91

32,30,49,648

5,848

32,30,55,496

9.98

1.07

g)

FIIs

60,12,88,317

2,31,527

60,15,19,844

18.61

60,83,98,675

2,31,027

60,86,29,702

18.81

0.20

h)

Foreign Venture Capital
Funds

0

0

0

0.00

0

0

0

0.00

0.00

(i)

Others

(i-i) Qualified Foreign Investor
(i-ii) UTI
SUB -TOTAL (B) (1)

121

0

121

0.00

0

0

0

0.00

0.00

0

3,04,309

3,04,309

0.01

0

3,03,909

3,03,909

0.01

0.00

96,20,06,135

28,82,002

96,48,88,137

29.85

1,01,25,36,774

28,16,609

1,01,53,53,383

31.38

1.53

188

Invest. Innovate. Inspire. For a new India.

Reliance Industries Limited

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)

Category of Shareholders

No. of Shares held at the beginning of the year
(As on 01-04-2014)
Demat

2

Physical

No. of Shares held at the end of the year
(As on 31-03-2015)

% of total shares Total

Demat

Physical

% of total shares Total

% of change during the year Non-institutions
a)

Bodies Corporate

i)

Indian

ii)

Overseas

b)

Individuals

I)

12,96,85,918

14,23,665

13,11,09,583

4.06

10,60,92,979

14,14,814

10,75,07,793

3.32

-0.74

1,81,958

36,186

2,18,144

0.01

1,81,958

36,186

2,18,144

0.01

0.00

Individual shareholders holding nominal share capital up to ` 1 lakh

26,10,63,082

6,44,80,184

32,55,43,266

10.07

25,11,57,322 6,11,90,958

31,23,48,280

9.65

-0.42

Individual shareholders holding nominal share capital in excess of
` 1 lakh

2,54,16,253

6,64,062

2,60,80,315

0.81

2,65,56,500

5,68,704

2,71,25,204

0.84

0.03

350

0

350

0.00

0

0

0

0.00

0.00

(c-ii) NRIs

1,51,15,569

49,25,789

2,00,41,358

0.62

1,52,02,285

46,89,209

1,98,91,494

0.61

-0.01

(c-iii) Clearing Member

1,07,77,559

0

1,07,77,559

0.33

24,44,850

0

24,44,850

0.08

-0.25

(c-iv) Shares held by Subsidiary
Companies on which no voting rights are exercisable

17,18,83,624

0

17,18,83,624

5.32

17,18,83,624

0

17,18,83,624

5.31

-0.01

(c-v) Unclaimed Shares Suspense
Account-Clause 5A.II2

62,41,611

0

62,41,611

0.19

61,38,914

0

61,38,914

0.19

0.00

0

0

0

0.00

43,86,121

24,791

44,10,912

0.14

0.14

62,03,65,924

7,15,29,886

69,18,95,810

21.41

58,40,44,553

6,79,24,662

65,19,69,215

20.15

-1.26

TOTAL PUBLIC
SHAREHOLDING (B) = (B)
(1) + (B)(2)

1,58,23,72,059

7,44,11,888

1,65,67,83,947

51.26

1,59,65,81,327 7,07,41,271 1,66,73,22,598

51.53

0.27

SHARES HELD BY
CUSTODIAN FOR GDRS
& ADRS

11,11,38,234

17,700

11,11,55,934

3.44

3,15,74,72,270

7,44,29,588

3,23,19,01,858

100.00

II)

c)

Others

(c-i) Qualified Foreign Investor

(c-vi) Trusts
SUB -TOTAL (B) (2)

C.

GRANDTOTAL (A+B+C) 1

10,43,86,490

17,700

10,44,04,190

3.23

-0.21

3,16,49,29,794 7,07,58,971

3,23,56,88,765

100.00

0.00

includes 415 equity shares of ` 10 each on which calls are in arrears to be paid by the shareholders who are not Promoters.
The voting rights on these shares shall remain frozen till the rightful owner claims the shares. [Refer to Clause 5A(II)(d) of the Listing Agreement.]

1
2

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

189

Directors’ Report

ATTACHMENT D
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) ii) Sl.
No.

1
2
3
4
5
6
7

8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

Shareholding of Promoters

Shareholder’s Name

Kankhal Trading LLP
Bhuvanesh Enterprises LLP
Ajitesh Enterprises LLP
Badri Commercials LLP
Abhayaprada Enterprises LLP
Trilokesh Commercials LLP
Petroleum Trust (through Trustees for sole beneficiary - M/s. Reliance
Industrial Investments and Holdings
Ltd.)
Farm Enterprises Limited
Taran Enterprises LLP
Pitambar Enterprises LLP
Adisesh Enterprises LLP
Rishikesh Enterprises LLP
Pavana Enterprises LLP
Smt. K D Ambani
Shreeji Comtrade LLP
Shrikrishna Tradecom LLP
Kamalakar Enterprises LLP
Nagothane Agrofarms Private
Limited
Shri. M D Ambani
Smt. Nita Ambani
Ms. Isha M Ambani
Master Akash M Ambani
Reliance Welfare Association
Narahari Enterprises LLP
Reliance Industrial Infrastructure
Limited
Master Anant M Ambani
Saumya Finance and Leasing
Company Private Limited
Exotic Investments and Trading
Company Pvt. Ltd.
Carat Holdings and Trading Co. Pvt.
Ltd.
Ekansha Enterprise Private Limited
Amudha Venture Capital Private
Limited
Neutron Enterprises Private Limited
Futura Commercials Private Limited
Relcom Venture Capital Private
Limited

Shareholding at the beginning of the year
(As on 01-04-2014)
% of Shares
% of total
Pledged /
Shares
No. of Shares encumbered of the to total company shares *
14,84,90,952
4.59
0.00
13,46,16,811
4.17
0.00
12,70,41,799
3.93
0.00
12,70,41,799
3.93
0.00
12,45,14,168
3.85
0.00
12,45,13,168
3.85
0.00

Shareholding at the end of the year
(As on 31-03-2015)
% of Shares
% of total
% change in
Pledged /
Shares of shareholdNo. of Shares encumbered the ing during to total company the year shares *
14,84,90,952
4.59
0.00
-0.01
13,46,16,811
4.16
0.00
0.00
12,70,41,799
3.93
0.00
0.00
12,70,41,799
3.93
0.00
0.00
12,45,14,168
3.85
0.00
0.00
12,45,13,168
3.85
0.00
0.00

12,04,71,003

3.73

0.00

12,04,71,003

3.72

0.00

0.00

11,89,78,113
10,63,73,069
10,49,00,070
8,10,99,093
6,04,09,418
3,56,73,400
73,31,074
66,77,500
66,77,500
63,70,016

3.68
3.29
3.25
2.51
1.87
1.10
0.23
0.21
0.21
0.20

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

11,89,78,113
10,63,73,069
10,49,00,070
8,10,99,093
6,04,09,418
3,56,73,400
73,31,074
66,77,500
66,77,500
63,70,016

3.68
3.29
3.24
2.51
1.87
1.10
0.23
0.21
0.21
0.20

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

56,00,000

0.17

0.00

56,00,000

0.17

0.00

0.00

36,15,846
33,98,146
33,64,390
33,63,190
25,05,468
6,16,840

0.11
0.11
0.10
0.10
0.08
0.02

0.00
0.00
0.00
0.00
0.00
0.00

36,15,846
33,98,146
33,64,390
33,63,190
25,05,468
6,16,840

0.11
0.11
0.10
0.10
0.08
0.02

0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00

1,72,000

0.01

0.00

1,72,000

0.01

0.00

0.00

1,00,000

0.00

0.00

1,00,000

0.00

0.00

0.00

21,200

0.00

0.00

21,200

0.00

0.00

0.00

12,988

0.00

0.00

12,688

0.00

0.00

0.00

5,100

0.00

0.00

5,100

0.00

0.00

0.00

2,550

0.00

0.00

2,550

0.00

0.00

0.00

900

0.00

0.00

900

0.00

0.00

0.00

861
845

0.00
0.00

0.00
0.00

861
845

0.00
0.00

0.00
0.00

0.00
0.00

600

0.00

0.00

600

0.00

0.00

0.00

190

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)

Sl.
No.

35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

Shareholder’s Name

Deccan Finvest Private Limited
Reliance Consultancy Services
Private Limited
Chakradev Enterprises LLP
Chakradhar Commercials LLP
Chakresh Enterprises LLP
Chhatrabhuj Enterprises LLP
Devarshi Commercials LLP
Harinarayan Enterprises LLP
Janardan Commercials LLP
Karuna Commercials LLP
Samarjit Enterprises LLP
Shripal Enterprises LLP
Srichakra Commercials LLP
Svar Enterprises LLP
Synergy Synthetics Private Limited
Tattvam Enterprises LLP
Vasuprada Enterprises LLP
Vishatan Enterprises LLP
Anuprabha Commercials Private
Limited
Elakshi Commercials Private Limited
Manuvidya Commercials Private
Limited
Nirahankara Commercials Private
Limited
Pinakin Commercials Private Limited
Vandhya Commercials Private
Limited
Reliance Industries Holding Private
Ltd
Reliance Life Sciences Private Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private
Limited
Reliance Utilities Private Limited
Reliance Corp
Reliance Group Corp
Shivapriya Corporation
TOTAL

Shareholding at the beginning of the year
(As on 01-04-2014)
% of Shares
% of total
Pledged /
Shares
No. of Shares encumbered of the to total company shares *
300
0.00
0.00

Shareholding at the end of the year
(As on 31-03-2015)
% of Shares
% of total
% change in
Pledged /
Shares of shareholdNo. of Shares encumbered the ing during to total company the year shares *
300
0.00
0.00
0.00

200

0.00

0.00

200

0.00

0.00

0.00

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0

0.00

0.00

50

0.00

0.00

0.00

0

0.00

0.00

50

0.00

0.00

0.00

0

0.00

0.00

50

0.00

0.00

0.00

0

0.00

0.00

50

0.00

0.00

0.00

0

0.00

0.00

50

0.00

0.00

0.00

0

0.00

0.00

50

0.00

0.00

0.00

0

0.00

0.00

0

0.00

0.00

0.00

0
0

0.00
0.00

0.00
0.00

0
0

0.00
0.00

0.00
0.00

0.00
0.00

0

0.00

0.00

0

0.00

0.00

0.00

0
0
0
0
1,46,39,61,977

0.00
0.00
0.00
0.00
45.30

0.00
0.00
0.00
0.00
0.00

0

0.00

0.00

0.00

1,46,39,61,977

45.24

0.00

-0.06

* The term “encumbrance” has the same meaning as assigned to it in regulation 28(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations,
2011.
Shareholders listed under Sl. No. 1 to 63 are disclosed as promoters under regulation 30(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations,
2011 as on March 31, 2015.

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

191

Directors’ Report

ATTACHMENT E
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) iii) Change in Promoters’ Shareholding
Sl.
No.

Shareholding at the beginning of the year
(As on 01-04-2014)
% of total
No. of shares shares of the company 1,46,39,61,977
45.30

At the beginning of the year
Date wise Increase / Decrease in Promoters Share holding during the year specifying the reasons for
#
increase / decrease (e.g. allotment / transfer / bonus/ sweat equity etc) #
At the End of the year
1,46,39,61,977

Cumulative Shareholding during the year
(01-04-2014 to 31-03-2015)
% of total
No. of shares shares of the company #
45.24*

Note : There is no change in the total shareholding of promoters between 01-04-2014 and 31-03-2015
* The decrease in % of total shares of the company from 45.30 % to 45.24 % is due to ESOS allotment of 37,86,907 shares.

# Inter-se Transfer among Promoters
Sl.
No.

1

2

3

4

5

6

7

Name

Date
Shareholding

Exotic Investments and
Trading Company Pvt Ltd

Anuprabha Commercials
Private Limited

Elakshi Commercials
Private Limited

Manuvidya Commercials
Private Limited

Nirahankara Commercials
Private Limited

Pinakin Commercials
Private Limited

Vandhya Commercials
Private Limited

No. of
Shares at the beginning (01-04-14) / end of the year (31-03-15)
12,988

% of total shares of the Company

0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00

Transfer (Inter se transfers)

50

Transfer (Inter se transfers)

31-Mar-2015
01-Apr-2014
31-Mar-2015

50

50

31-Mar-2015

50

Transfer (Inter se transfers)

0.00
0.00

50

0.00
0.00

50

0.00
0.00

50

0.00
0.00

50

0.00

50

Transfer (Inter se transfers)

31-Mar-2015
01-Apr-2014
31-Mar-2015

50
0

50

50

50

Transfer (Inter se transfers)

0.00

50

50

0.00

50

Transfer (Inter se transfers)

12,688

50

50

31-Mar-2015
01-Apr-2014
31-Mar-2015

50
0

Cumulative Shareholding during the year
(01-04-14 to 31-03-15)
% of total
No.of
shares
Shares
of the
Company

12,688

31-Mar-2015
01-Apr-2014
31-Mar-2015

50
0

Transfer (Inter se transfers)

31-Mar-2015
01-Apr-2014
31-Mar-2015

50
0

-300

31-Mar-2015
01-Apr-2014
31-Mar-2015

50
0

Reason

01-Apr-2014
31-Mar-2015

12,688
0

Increase/
Decrease
in shareholding

0.00

50

0.00

50

0.00

192

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
ATTACHMENT F
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) iv) Shareholding Pattern of top ten Shareholders (Other than Directors, Promoters and Holders of GDRs and
ADRs)
Shareholding
Sl.
Name
No.

1

No.of Shares at the beginning (01-04-14)/end of the year(31-03-15)
26,35,20,679

% of total shares of the
Company

4

Reliance Polyolefins Limited

Abu Dhabi Investment
Authority

29,69,44,782
6,22,39,998

9.18
1.93

1.92*

31-Mar-2015

6,11,94,924

1.89

1-Apr-2014

6,11,94,924

3

Reliance Chemicals Limited

1-Apr-2014
4-Apr-2014
11-Apr-2014
18-Apr-2014
25-Apr-2014
9-May-2014
8-Aug-2014
15-Aug-2014
22-Aug-2014
29-Aug-2014
5-Sep-2014
19-Sep-2014
30-Sep-2014
10-Oct-2014
17-Oct-2014
24-Oct-2014
31-Oct-2014
7-Nov-2014
5-Dec-2014
19-Dec-2014
31-Dec-2014
2-Jan-2015
9-Jan-2015
16-Jan-2015
23-Jan-2015
27-Feb-2015
6-Mar-2015
20-Mar-2015
27-Mar-2015
31-Mar-2015
1-Apr-2014

6,22,39,998

2

Life Insurance Corporation of India

8.15

Date

1.89

31-Mar-2015

4,09,15,544

1.27

Cumulative Shareholding during the year (01-04-14 to 31-03-15)

Increase/
Decrease
in shareholding

Reason

No. of Shares

% of total shares of the
Company

1-Apr-2014
4-Apr-2014
30-May-2014
6-Jun-2014
13-Jun-2014

* Decrease in the % of total shares of the Company is due to ESOS allotment.

-4,70,000
-3,02,000
-12,373
-11,96,111
-3,04,421
23,670
24,51,611
4,69,969
4,99,000
1,55,075
-3,00,000
50,000
11,43,556
9,34,539
24,13,717
23,69,581
-1,93,541
-3,08,498
43,32,754
50,97,539
13,12,235
24,59,772
52,58,512
4,51,806
18,96,704
24,82,086
17,47,615
7,61,306
2,00,000
0

Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Nil
movement during the year
Nil
0 movement during the year

-48,500
80,000
5,24,265
-85,800

Transfer
Transfer
Transfer
Transfer

26,30,50,679
26,27,48,679
26,27,36,306
26,15,40,195
26,12,35,774
26,12,59,444
26,37,11,055
26,41,81,024
26,46,80,024
26,48,35,099
26,45,35,099
26,45,85,099
26,57,28,655
26,66,63,194
26,90,76,911
27,14,46,492
27,12,52,951
27,09,44,453
27,52,77,207
28,03,74,746
28,16,86,981
28,41,46,753
28,94,05,265
28,98,57,071
29,17,53,775
29,42,35,861
29,59,83,476
29,67,44,782
29,69,44,782

8.13
8.12
8.12
8.08
8.07
8.07
8.15
8.16
8.18
8.18
8.18
8.18
8.21
8.24
8.32
8.39
8.38
8.37
8.51
8.67
8.71
8.78
8.94
8.96
9.02
9.09
9.15
9.17
9.18

6,22,39,998

1.92

6,11,94,924

1.89

4,08,67,044
4,09,47,044
4,14,71,309
4,13,85,509

1.26
1.27
1.28
1.28

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

193

Directors’ Report

Shareholding
Sl.
Name
No.

No.of Shares at the beginning (01-04-14)/end of the year(31-03-15)

% of total shares of the
Company

Date

4,11,05,837

6

Reliance Aromatics and
Petrochemicals Limited

Vanguard Emerging Markets
Stock Index Fund, A Series of
Vanguard International Equity
Inde X Fund

1.27

2,98,89,898

0.92

1-Apr-2014

2,98,89,898

5

20-Jun-2014
30-Jun-2014
4-Jul-2014
11-Jul-2014
18-Jul-2014
1-Aug-2014
5-Sep-2014
19-Sep-2014
30-Sep-2014
24-Oct-2014
14-Nov-2014
28-Nov-2014
5-Dec-2014
12-Dec-2014
19-Dec-2014
23-Jan-2015
27-Feb-2015
6-Mar-2015
20-Mar-2015
31-Mar-2015

0.92
0.86

1-Apr-2014
4-Apr-2014
11-Apr-2014
18-Apr-2014
23-May-2014
30-May-2014
6-Jun-2014
11-Jul-2014
25-Jul-2014
1-Aug-2014
22-Aug-2014
12-Sep-2014
30-Sep-2014
28-Nov-2014
5-Dec-2014
31-Dec-2014
9-Jan-2015
16-Jan-2015
23-Jan-2015
6-Feb-2015
13-Feb-2015
27-Mar-2015
31-Mar-2015

Reason

-40,825
16,344
54,720
5,55,079
1,35,202
-2,43,531
2,45,898
85,506
39,954
-257257
-194010
5,68,942
-3,00,258
1,12,211
-3,74,164
68,800
-64,688
-6,97,595
10,000

Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer

0

31-Mar-2015

2,78,17,612

Cumulative Shareholding during the year (01-04-14 to 31-03-15)

Increase/
Decrease
in shareholding

2,85,71,829

0.88

1,62,160
1,98,646
28,378
3,36,247
1,96,624
1,20,201
1,41,890
1,59,920
2,55,872
99,950
1,11,944
-5,10,401
1,05,784
5,73,107
-2,87,507
-1,54,898
-68,004
-64,226
-18,890
-75,560
-5,01,385
-55,635

No. of Shares

% of total shares of the
Company

4,13,44,684
4,13,61,028
4,14,15,748
4,19,70,827
4,21,06,029
4,18,62,498
4,21,08,396
4,21,93,902
4,22,33,856
4,19,76,599
4,17,82,589
4,23,51,531
4,20,51,273
4,21,63,484
4,17,89,320
4,18,58,120
4,17,93,432
4,10,95,837
4,11,05,837
4,11,05,837

1.28
1.28
1.28
1.30
1.30
1.29
1.30
1.30
1.31
1.30
1.29
1.31
1.30
1.30
1.29
1.29
1.29
1.27
1.27
1.27

Nil movement during the year

2,98,89,898

0.92

Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer

2,79,79,772
2,81,78,418
2,82,06,796
2,85,43,043
2,87,39,667
2,88,59,868
2,90,01,758
2,91,61,678
2,94,17,550
2,95,17,500
2,96,29,444
2,91,19,043
2,92,24,827
2,97,97,934
2,95,10,427
2,93,55,529
2,92,87,525
2,92,23,299
2,92,04,409
2,91,28,849
2,86,27,464
2,85,71,829

0.86
0.87
0.87
0.88
0.89
0.89
0.90
0.90
0.91
0.91
0.92
0.90
0.90
0.92
0.91
0.91
0.91
0.90
0.90
0.90
0.88
0.88

194

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Shareholding
Sl.
Name
No.

7

Government of Singapore

No.of Shares at the beginning (01-04-14)/end of the year(31-03-15)
3,24,28,137

2,66,37,648

% of total shares of the
Company
1.00

0.82

Cumulative Shareholding during the year (01-04-14 to 31-03-15)

Date

Increase/
Decrease
in shareholding

Reason

1-Apr-2014
4-Apr-2014
11-Apr-2014
18-Apr-2014
25-Apr-2014
2-May-2014
23-May-2014
30-May-2014
6-Jun-2014
13-Jun-2014
20-Jun-2014
30-Jun-2014
4-Jul-2014
11-Jul-2014
18-Jul-2014
25-Jul-2014
1-Aug-2014
8-Aug-2014
22-Aug-2014
29-Aug-2014
5-Sep-2014
12-Sep-2014
19-Sep-2014
30-Sep-2014
3-Oct-2014
10-Oct-2014
17-Oct-2014
24-Oct-2014
31-Oct-2014
7-Nov-2014
21-Nov-2014
28-Nov-2014
5-Dec-2014
12-Dec-2014
19-Dec-2014
31-Dec-2014
9-Jan-2015
16-Jan-2015
23-Jan-2015
30-Jan-2015
13-Feb-2015
20-Feb-2015
27-Feb-2015
6-Mar-2015
13-Mar-2015
20-Mar-2015
27-Mar-2015
31-Mar-2015

7,00,358
-5,66,760
-3,47,654
-24,846
-4,63,205
-3,77,950
-3,68,735
-3,60,440
-15,828
-33,711
-2,04,718
-46,424
-2,61,916
-2,94,629
-82,984
-6,01,266
-86,816
-3,35,266
-1,58,490
-3,83,745
12,918
11,137
-3,11,915
86,760
1,64,509
-1,24,979
1,878
1,98,532
5,64,792
-4,11,118
-40,221
-88,762
-1,01,314
-61,702
-1,15,806
-1,96,605
3,99,402
-68,096
-2,80,867
-1,81,562
-67,995
-3,47,258
-53,944
-2,59,459
-3,00,000
96,211

Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer

No. of Shares

3,31,28,495
3,25,61,735
3,22,14,081
3,21,89,235
3,17,26,030
3,13,48,080
3,09,79,345
3,06,18,905
3,06,03,077
3,05,69,366
3,03,64,648
3,03,18,224
3,00,56,308
2,97,61,679
2,96,78,695
2,90,77,429
2,89,90,613
2,86,55,347
2,84,96,857
2,81,13,112
2,81,26,030
2,81,37,167
2,78,25,252
2,79,12,012
2,80,76,521
2,79,51,542
2,79,53,420
2,81,51,952
28,716,744
2,83,05,626
2,82,65,405
2,81,76,643
2,80,75,329
2,80,13,627
2,78,97,821
2,77,01,216
2,81,00,618
2,80,32,522
2,77,51,655
2,75,70,093
2,75,02,098
2,71,54,840
2,71,00,896
2,68,41,437
2,65,41,437
2,66,37,648
2,66,37,648

% of total shares of the
Company

1.02
1.01
1.00
0.99
0.98
0.97
0.96
0.95
0.95
0.94
0.94
0.94
0.93
0.92
0.92
0.90
0.90
0.89
0.88
0.87
0.87
0.87
0.86
0.86
0.87
0.86
0.86
0.87
0.89
0.87
0.87
0.87
0.87
0.87
0.86
0.86
0.87
0.87
0.86
0.85
0.85
0.84
0.84
0.83
0.82
0.82
0.82

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

195

Directors’ Report

Shareholding
Sl.
Name
No.

8

Franklin Templeton
Investment Funds

No.of Shares at the beginning (01-04-14)/end of the year(31-03-15)

% of total shares of the
Company

2,80,95,227

0.87

Date

10

11

Europacific Growth Fund *

Dimensional Emerging
Markets Value Fund

Janus Overseas Fund#

Reason

-10,27,027
-3,00,000
-1,50,000
-2,20,000
-2,50,000
-99,000
-11,51,300
-3,30,141
-2,24,859
1,64,700
56,100
81,400
93,400
1,14,600

Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer

2,70,68,200
2,67,68,200
2,66,18,200
2,63,98,200
2,61,48,200
2,60,49,200
2,48,97,900
2,45,67,759
2,43,42,900
2,45,07,600
2,45,63,700
2,46,45,100
2,47,38,500
2,48,53,100
2,48,53,100

0.84
0.83
0.82
0.82
0.81
0.81
0.77
0.76
0.75
0.76
0.76
0.76
0.76
0.77
0.77

90,11,867
17,76,791
10,72,390
9,65,152
26,50,853
3,70,974
-26,40,000

Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer

1,80,35,640
1,98,12,431
2,08,84,821
2,18,49,973
2,45,00,826
2,48,71,800
2,22,31,800
2,22,31,800

0.56
0.61
0.65
0.68
0.76
0.77
0.69
0.69

-58,116
-25,389
-3,09,436
-97,629
-75,503
-1,43,871
-21,153
-38,681
97,216
1,86,053
1,00,129

Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer

2,11,31,225
2,11,05,836
2,07,96,400
2,06,98,771
2,06,23,268
2,04,79,397
2,04,58,244
2,04,19,563
2,05,16,779
2,07,02,832
2,08,02,961

0.65
0.65
0.64
0.64
0.64
0.63
0.63
0.63
0.63
0.64
0.64

-11,92,197
-11,11,649
-1,40,085
-1,33,613
-1,36,630
-1,37,239
-6,08,244
-4,80,504

Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer

2,15,17,626
2,04,05,977
2,02,65,892
2,01,32,279
1,99,95,649
1,98,58,410
1,92,50,166
1,87,69,662

0.67
0.63
0.63
0.62
0.62
0.61
0.59
0.58

No. of Shares

% of total shares of the
Company

1-Apr-2014

2,22,31,800

9

Cumulative Shareholding during the year (01-04-14 to 31-03-15)

Increase/
Decrease
in shareholding

0.69

4-Apr-2014
2-May-2014
23-May-2014
30-May-2014
6-Jun-2014
20-Jun-2014
18-Jul-2014
17-Oct-2014
24-Oct-2014
14-Nov-2014
21-Nov-2014
28-Nov-2014
9-Jan-2015
13-Feb-2015
31-Mar-2015
1-Apr-2014
4-Apr-2014
11-Apr-2014
18-Apr-2014
25-Apr-2014
2-May-2014
9-May-2014
6-Feb-2015
31-Mar-2015

2,11,89,341

0.66

1-Apr-2014

2,48,53,100
90,23,773

2,08,02,961
2,27,09,823

0.77
0.28

0.64
0.70

4-Apr-2014
28-Nov-2014
5-Dec-2014
12-Dec-2014
19-Dec-2014
31-Dec-2014
2-Jan-2015
16-Jan-2015
20-Mar-2015
27-Mar-2015
31-Mar-2015
1-Apr-2014
16-May-2014
23-May-2014
18-Jul-2014
8-Aug-2014
22-Aug-2014
12-Sep-2014
19-Sep-2014
30-Sep-2014

196

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Shareholding
Sl.
Name
No.

No.of Shares at the beginning (01-04-14)/end of the year(31-03-15)

Date

% of total shares of the
Company

1,54,81,444

0.48

Cumulative Shareholding during the year (01-04-14 to 31-03-15)

Increase/
Decrease
in shareholding

31-Oct-2014
28-Nov-2014
12-Dec-2014
31-Dec-2014
9-Jan-2015
16-Jan-2015
23-Jan-2015
30-Jan-2015
13-Feb-2015
13-Mar-2015
31-Mar-2015

Reason

-13,02,471
-4,92,025
-2,03,107
-3,08,380
-95,294
-1,84,445
-1,58,244
-1,27,814
-1,38,466
-2,77,972

Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer

No. of Shares

1,74,67,191
1,69,75,166
1,67,72,059
1,64,63,679
1,63,68,385
1,61,83,940
1,60,25,696
1,58,97,882
1,57,59,416
1,54,81,444
1,54,81,444

% of total shares of the
Company
0.54
0.52
0.52
0.51
0.51
0.50
0.50
0.49
0.49
0.48
0.48

*

Not in the list of Top 10 shareholders as on 01-04-2014. The same has been reflected above since the shareholder was one of the Top 10 shareholders as on
31-03-2015.

#

Ceased to be in the list of Top 10 shareholders as on 31-03-2015. The same is reflected above since the shareholder was one of the Top 10 shareholder as on
01-04-2014.

ATTACHMENT G
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
v)
Sl.
No.

Shareholding of Directors and Key Managerial Personnel
Name

Date
Shareholding
No. of
Shares at the beginning
(01-04-14) / end of the year (31-03-15)

A
1

DIRECTORS:
Mukesh D. Ambani
Chairman And Managing
Director

% of total shares of the Company

36,15,846

0.11

36,15,846

4

Hital R. Meswani
Executive Director

Nita M. Ambani
Non-Executive Director
(Appointed as a Director on
18-06-2014)

4,18,374

0.01

01-Apr-2014

3,51,886

0.01

36,15,846

33,98,146

0.11

18-Jun-2014

33,98,146

0.11 31-Mar-2015

0.11

4,18,374

0.01

3,51,886

0.01 31-Mar-2015

01-Apr-2014

Cumulative Shareholding during the year
(01-04-14 to 31-03-15)
No.of
% of total
Shares
shares of the Company

0 Nil movement during the year

0.01 31-Mar-2015

3,51,886

3

Nikhil R. Meswani
Executive Director

Reason

0.11 31-Mar-2015

01-Apr-2014

4,18,374

2

Increase/
Decrease
in shareholding

0.01

33,98,146

0.11

0 Nil movement during the year

0 Nil movement during the year

0 Nil movement during the year

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

197

Directors’ Report

Sl.
No.

5

Name

Date
Shareholding

P. M. S. Prasad
Executive Director

No. of
Shares at the beginning
(01-04-14) / end of the year (31-03-15)
1,36,666
1,36,666

6

Pawan Kumar Kapil
Executive Director

5,000

% of total shares of the Company

0.00

01-Apr-2014

Increase/
Decrease
in shareholding

Reason

0 Nil movement during the year

0.00 31-Mar-2015
0.00

Cumulative Shareholding during the year
(01-04-14 to 31-03-15)
No.of
% of total
Shares
shares of the Company

1,36,666

0.00

01-Apr-2014
01-Apr-2014

-1,000 Transfer

4,000

0.00

02-Apr-2014

-1,000 Transfer

3,000

0.00

07-Apr-2014

-1,000 Transfer

2,000

0.00

15-Apr-2014

5,000 ESOS Allotment

7,000

0.00

28-Apr-2014

3,300 ESOS Allotment

10,300

0.00

30-Apr-2014

-2,000 Transfer

8,300

0.00

06-May-2014

-1,000 Transfer

7,300

0.00

07-May-2014

-500 Transfer

6,800

0.00

09-May-2014

-2,500 Transfer

4,300

0.00

12-May-2014

-1,000 Transfer

3,300

0.00

16-May-2014

-500 Transfer

2,800

0.00

22-May-2014

-1,500 Transfer

1,300

0.00

23-May-2014

-500 Transfer

800

0.00

28-May-2014

-500 Transfer

300

0.00

03-Jun-2014

-300 Transfer

0

0.00

04-Jun-2014

8,000 ESOS Allotment

8,000

0.00

21-Nov-2014

-1,000 Transfer

7,000

0.00

-500 Transfer

6,500

0.00

28-Nov-2014
13-Jan-2015
8,000

8

Ramniklal H. Ambani
Non-Executive Director
(Ceased to be Director on 18-062014)

1,73,900

0.01

01-Apr-2014

1,73,900

0.01

Mansingh L. Bhakta
Non-Executive Director

3,30,000

0.01

01-Apr-2014

10

Yogendra P. Trivedi
Non-Executive Director

Dr. Dharam Vir Kapur
Non-Executive Director

27,984

0.00

27,984

9

01-Apr-2014

0.00

13,544

0.00 31-Mar-2015

01-Apr-2014

0.01

27,984

0.00

13,544

0.00

0 Nil movement during the year

0 Nil movement during the year

0.00 31-Mar-2015

13,544

0.01

3,30,000

0.01 31-Mar-2015

0.00
0.00

1,73,900

18-Jun-2014

8,000
8,000

0.00 31-Mar-2015

3,30,000

7

1,500 ESOS Allotment

0 Nil movement during the year

0 Nil movement during the year

198

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)
Sl.
No.

Name

Date
Shareholding

12

Mahesh P. Modi
Non-Executive Director
(Ceased to be a Director on
15-02-2015)
Prof. Ashok Misra
Non-Executive Director

% of total shares of the Company

0.00

01-Apr-2014

2,924

0.00

2,300

0.00

01-Apr-2014

0.00 31-Mar-2015

16

B
1

2

Adil Zainulbhai
Non-Executive Director

Maheshwar Sahu
Non-Executive Director
(Appointed as a Director on
19-02-2015)
(Ceased to be a Director on
30-03-2015)
Key Managerial
Personnel(KMP's)
K Sethuraman
Group Company Secretary and
Chief Compliance Officer
Alok Agarwal
Chief Financial Officer

0.00 31-Mar-2015

0

0.00

0.00 31-Mar-2015

0

0.00

0

15

Dr. Raghunath A. Mashelkar
Non-Executive Director

0.00

0

14

Prof. Dipak C. Jain
Non-Executive Director

0
0

13

0.00 31-Mar-2015

Srikanth Venkatachari
Joint Chief Financial Officer

01-Apr-2014

01-Apr-2014

01-Apr-2014

2,300

0.00

2,300

35,500
40,000
1,06,126

75,111
99,180

19-Feb-2015

01-Apr-2014
03-Feb-2015
0.00 31-Mar-2015

Cumulative Shareholding during the year
(01-04-14 to 31-03-15)
No.of
% of total
Shares
shares of the Company

0 Nil movement during the year
2,924

0.00

2,300

0.00

0 Nil Holding/ movement during the year

0

0.00

0 Nil Holding/ movement during the year

0

0.00

0 Nil Holding/ movement during the year

0

0.00

2,300

0.00

4,500 ESOS Allotment

40,000
40,000

0.00
0.00

21,000 ESOS Allotment
6,000 ESOS Allotment
7,500 ESOS Allotment

1,27,126
1,33,126
1,40,626
1,40,626

0.00
0.00
0.00
0.00

99,180
99,180

0.00
0.00

0 Nil movement during the year

0.00 30-Mar-2015

1,40,626

3

Reason

15-Feb-2015

2,300

11

No. of
Shares at the beginning
(01-04-14) / end of the year (31-03-15)
2,924

Increase/
Decrease
in shareholding

0 Nil movement during the year

0.00

0.00

01-Apr-2014
14-Jul-2014
05-Sep-2014
03-Feb-2015
0.00 31-Mar-2015

0.00

01-Apr-2014
15-May-2014
0.00 31-Mar-2015

24,069 Transfer

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

199

Directors’ Report

ATTACHMENT H
V. INDEBTENDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Amount (` in crore)
Secured Loans excluding deposits Unsecured Loans

Deposits

Total Indebtedness

Indebtedness at the beginning of the financial year (01.04.2014)
11,056.35

78,759.25

87.41
11,143.76

i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due

89,815.60

105.88
78,865.13

-

193.29
90,008.89

2,68,873.02
2,78,085.92
-121.84
-9,091.06

81,742.18
67,621.18
-2,633.34
16,754.34

-

3,50,615.20
3,45,707.10
-2,755.18
7,663.28

i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due

1,983.02

95,513.58

97,496.60

64.02

189.70

-

TOTAL (i+ii+iii)

2,047.04

95,703.28

-

97,750.32

TOTAL (i+ii+iii)
Change in Indebtedness during the financial year
Addition
Reduction
Exchange Difference

Net Change
Indebtedness at the end of the financial year (31.03.2015)

253.72

ATTACHMENT I
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(` in crore)

Sl. Particulars of
No. Remuneration
1

2
3
4
5

Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax
Act, 1961
(b) Value of perquisites u/s
17(2) of the
Income-tax Act,
1961
(c) Profits in lieu of salary under section 17(3) of the Income-tax
Act, 1961
Stock Option
Sweat Equity
Commission
- as % of profit - others
Others
TOTAL (A)
Ceiling as per the Act

Name of MD/WTD/Manager
Nikhil R
Hital R.
P.M.S Prasad
Meswani
Meswani

Mukesh D.
Ambani

Pawan
Kumar Kapil

Total
Amount

4.22

2.46

2.21

5.81

2.12

16.82

0.57

0.36

0.60

0.06

0.20

1.79

-

-

-

-

-

-

-

-

-

-

0.46
-

0.46
-

9.41

9.20

9.20

-

-

27.81

14.20
12.02
12.01
5.87
2.78
46.88
` 2,949.90 crore (being 10% of the net profits of the Company calculated as per Section 198 of the
Companies Act, 2013)

Overall Ceiling as per the Act

TOTAL (2)
TOTAL (B)=(1+2)
TOTAL MANAGERIAL
REMUNERATION*

· Fee for attending board / committee meetings
· Commission
· Others

TOTAL (1)
Other Non-Executive
Directors

0.12

-

1.12

0.22
-

0.23
0.23

-

0.01

1.12

-

-

1.00
-

-

Mansingh L.
Bhakta

1.36

-

-

1.36

1.00
-

0.36

Yogendra P.
Trivedi

1.06

-

-

1.06

0.88
-

0.18

Mahesh P.
Modi
(Ceased to be a Director on
15-02-2015)

1.17

-

-

1.17

1.00
-

0.17

Prof. Ashok
Misra

1.11

-

-

1.11

1.00
-

0.11

Prof. Dipak
C Jain

1.28

-

-

1.28

1.00
-

0.28

Dr. Raghunath
A. Mashelkar

1.28

-

-

1.28

1.00
-

0.28

Adil Zainulbhai

` 294.99 crore (being 1% of the net profits of the Company calculated as per Section 198 of the Companies Act, 2013)

1.27

-

-

1.27

1.00
-

0.27

Dr. Dharam Vir
Kapur

* Total remuneration to Managing Director, Whole-Time Directors and other Directors (being the total of A and B).

2.

Independent Directors

1.

Ramniklal H.
Ambani
(Ceased to be
Director on
18-06-2014)

Name of Directors

0.84
0.84

0.79
-

0.05

-

-

-

Nita M. Ambani
(Appointed as a Director on
18-06-2014)

57.60*

1.07
10.72

1.01
-

0.06

9.65

7.88
-

1.77

Total Amount

(` in crore)

Reliance Industries Limited

· Fee for attending board / committee meetings
· Commission
· Others

Particulars of Remuneration

Remuneration to other directors:

Sl.
No.

B.

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

ATTACHMENT J

200
Invest. Innovate. Inspire. For a new India.
Annual Report 2014-15

DIRECTORS’ REPORT (CONTINUED)

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

201

Directors’ Report

ATTACHMENT K
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
C.

REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
(` in crore)

Sl.
No.
1

2
3
4
5

Particulars of Remuneration CEO
Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act,
1961
(b) Value of perquisites u/s
17(2) of the Income-tax
Act, 1961
(c) Profits in lieu of salary under section 17(3) of the
Income-tax Act, 1961
Stock Option
Sweat Equity
Commission
- as % of profit
Others - Medical
- Cars
- Interest Concession on loan
TOTAL

Key Managerial Personnel
Company
CFO
Secretary
(Alok Agarwal)
(K. Sethuraman)

Total
Amount

Joint CFO
(Srikanth
Venkatachari)

0.88

11.51

11.48

23.87

-

-

-

-

-

-

-

-

0.09
-

1.33
-

-

1.42
-

0.02
0.00
-

0.00
0.01
0.01

0.00
0.00
-

0.02
0.01
0.01

0.99

12.86

11.48

25.33

Details of
Penalty / punishment / compounding fees imposed

Authority (RD/
NCLT/ COURT)

Appeal made, if any (give details) Not
Applicable

ATTACHMENT L
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES

Type

Section of the
Companies
Act

Brief
Description

Penalty
Punishment
Compounding

OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding

NIL

202

Reliance Industries Limited

203 /
204 /
205 /
206 /
208 /
212 /

Invest. Innovate. Inspire. For a new India.

Independent Auditors’ Report on Financial Statements
Balance Sheet
Profit and Loss Statement
Cash Flow Statement
Significant Accounting Policies
Notes on Financial Statements

STANDALONE
FINANCIAL
STATEMENTS &
NOTES

Annual Report 2014-15

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF
RELIANCE INDUSTRIES LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of Reliance Industries Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2015, the Profit and
Loss Statement, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
MANAGEMENT’S RESPONSIBILITY FOR THE STANDALONE
FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company’s directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone

financial statements give the information required by the
Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at
March 31, 2015, and its profit and its cash flows for the year ended on that date.
OTHER MATTERS
The financial statements and other financial information include the Company’s proportionate share in jointly controlled assets of
` 967 crore, liabilities of ` 190 crore, expenditure of ` 440 crore and the elements making up the Cash Flow Statement and related disclosures in respect of an Unincorporated Joint Venture which is based on statements from the respective Operators and certified by the management.
Our opinion is not qualified / modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
As required by Section 143(3) of the Act, we report that:
a)
We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b)
In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c)
The Balance Sheet, the Profit and Loss Statement, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d)
In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014;
e)
On the basis of the written representations received from the directors as on March 31, 2015, taken on record by the
Board of Directors, none of the directors is disqualified as on
March 31, 2015, from being appointed as a director in terms of Section 164 (2) of the Act.
f)
With respect to the other matters to be included in the
Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i)
The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note 33.2 (d), (e) and Note
34 to the financial statements.
(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, and as required on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except a sum of
` 15 crore, which are held in abeyance due to pending legal cases.
For Chaturvedi & Shah
For Deloitte Haskins & Sells LLP
Chartered Accountants
Chartered Accountants
(Registration No. 101720W) (Registration No. 117366W/ W-100018)

For Rajendra & Co.
Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611

A. R. Shah
Partner
Membership No.:47166

Mumbai
Date : April 17, 2015

A. B. Jani
Partner
Membership No.: 46488

203

204

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

RELIANCE INDUSTRIES LIMITED
BALANCE SHEET AS AT 31ST MARCH, 2015
(` in crore)
Note

As at
31st March, 2015

As at
31st March, 2014

EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital
Reserves and Surplus

1
2

Share Application Money Pending Allotment
Non-Current Liabilities

1

Long Term Borrowings
Deferred Tax Liability (Net)
Deferred Payment Liability
Long Term Provisions

3
4
5

3,236
2,12,923

3,232
1,93,842
2,16,159
17

1,97,074
17

76,227
12,677
1,404

62,708
12,215
3
90,308

74,926

Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions

6
7
8
9

12,914
54,470
19,063
4,854

22,770
57,862
10,767
4,167
91,301
3,97,785

TOTAL

95,566
3,67,583

ASSETS
Non-Current Assets
Fixed Assets
Tangible Assets
Intangible Assets
Capital Work-in-Progress
Intangible Assets under Development
Non-Current Investments
Long Term Loans and Advances

10
10
10
10
11
12

79,778
34,785
65,178
10,575
62,058
29,259

80,368
29,038
32,673
9,043
52,692
28,436
2,81,633

2,32,250

Current Assets
Current Investments
Inventories
Trade Receivables
Cash and Bank Balances
Short Term Loans and Advances
Other Current Assets

13
14
15
16
17
18

1,35,333
3,67,583

1 to 37
For and on behalf of the Board

As per our Report of even date
For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Alok Agarwal
Chief Financial Officer

Srikanth Venkatachari
Joint Chief Financial Officer

K. Sethuraman
Company Secretary

Mumbai
Date : April 17,2015

33,370
42,932
10,664
36,624
11,277
466
1,16,152
3,97,785

TOTAL
Significant Accounting Policies
See accompanying Notes to the Financial Statements

For Chaturvedi & Shah
Chartered Accountants

50,515
36,551
4,661
11,571
12,307
547

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani

- Chairman & Managing Director
Executive Directors

Directors

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

205

Standalone

RELIANCE INDUSTRIES LIMITED
PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
2014-15

Note

2013-14

INCOME
Revenue from Operations
Sale of Products

19

Income from Services

3,40,727

4,01,200

87

Net Revenue from Operations

4,01,302

11,738

Less: Excise Duty / Service Tax Recovered

102

3,40,814

11,185
3,29,076

Other Income

20

3,90,117

8,721

8,936

3,37,797

3,99,053

2,55,998

3,29,313

7,134

TOTAL REVENUE

524

EXPENDITURE
Cost of Materials Consumed

21

Purchases of Stock-in-Trade
Changes in Inventories of Finished Goods, Stock-in-Process and
Stock-in-Trade

22

1,943

412

Employee Benefits Expense

23

3,686

3,370

Finance Costs

24

2,367

3,206

Depreciation / Amortisation and Depletion Expense

25

8,488

8,789

Other Expenses

26

28,713

25,621

3,08,329

3,71,235

29,468

27,818

6,124

5,812

TOTAL EXPENSES
Profit Before Tax

Tax Expenses
Current Tax
Deferred Tax

625

22

22,719

Profit for the Year

21,984

70.25

68.05

Earnings per equity share of face value of ` 10 each
Basic and Diluted (in `)

31

Significant Accounting Policies
See accompanying Notes to the Financial Statements

1 to 37
For and on behalf of the Board

As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Alok Agarwal
Chief Financial Officer

Srikanth Venkatachari
Joint Chief Financial Officer

K. Sethuraman
Company Secretary

Mumbai
Date : April 17,2015

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani

- Chairman & Managing Director
Executive Directors

Directors

206

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

RELIANCE INDUSTRIES LIMITED
CASH FLOW STATEMENT FOR THE YEAR 2014-15
(` in crore)
2014-15

2013-14

29,468

27,818

A: CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Tax as per Profit and Loss Statement
Adjusted for:
Write off of Investment (` 26,96,800)

-

25

Loss on Sale / Discard of Assets (Net)

31

44

Depreciation / Amortisation and Depletion Expense

8,488

8,789

Effect of Exchange Rate Change

1,408

2,739

Net Gain on Sale of Investments

(3,046)

(2,348)

(250)

(91)

(5,414)

(6,472)

2,367

3,206

Dividend Income
Interest Income
Finance Costs

3,584
33,052

Operating Profit before Working Capital Changes

5,892
33,710

Adjusted for:
Trade and Other Receivables

5,462

413

Inventories

6,381

(203)

(3,528)

14,305

Trade and Other Payables

8,315

Cash Generated from Operations

41,367

48,225

Taxes Paid (Net)

(6,082)

(6,065)

Net Cash from Operating Activities

B:

14,515

35,285

42,160

(42,720)

(32,456)

86

57

(11,506)

(22,621)

169

7,182

(6,55,591)

(7,55,722)

6,43,525

7,39,929

Movement in Loans and Advances

(133)

(3,911)

Maturity of / (Investment in) Fixed Deposits

3,400

(3,400)

Interest Income

6,584

6,838

188

91

(55,998)

(64,013)

CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets
Sale of Fixed Assets
Purchase of Investments in Subsidiaries / Trusts
Redemption of Investments in Subsidiaries
Purchase of Other Investments
Sale / Redemption of Other Investments

Dividend Income
Net Cash (Used in) Investing Activities

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

207

Standalone

CASH FLOW STATEMENT FOR THE YEAR 2014-15 (CONTINUED)
(` in crore)
2014-15

226

183

17

17

Proceeds from Long Term Borrowings

20,310

20,500

Repayment of Long Term Borrowings

C:

2013-14

(4,555)

(19,672)

(10,302)

11,648

CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Issue of Share Capital
Share Application Money

Short Term Borrowings (Net)
Dividends Paid (including Dividend Distribution Tax)

(3,268)

(3,093)

Interest Paid

(3,368)

(4,053)

(940)

5,530

(21,653)

(16,323)

Opening Balance of Cash and Cash Equivalents

33,224

49,547

Closing Balance of Cash and Cash Equivalents*
(Refer Note No. 16)

11,571

33,224

Net Cash (Used in) / Generated from Financing Activities

Net (Decrease) in Cash and Cash Equivalents

*

Include towards Unclaimed Dividend of ` 199 crore (Previous year ` 175 crore)

For and on behalf of the Board

As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Alok Agarwal
Chief Financial Officer

Srikanth Venkatachari
Joint Chief Financial Officer

K. Sethuraman
Company Secretary

Mumbai
Date : April 17,2015

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani

- Chairman & Managing Director
Executive Directors

Directors

208

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

SIGNIFICANT ACCOUNTING POLICIES
A.

BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in
India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies
Act, 2013.
The financial statements are prepared on accrual basis under the historical cost convention, except for certain Fixed
Assets which are carried at revalued amounts. The financial statements are presented in Indian rupees rounded off to the nearest rupees in crore.

B.

USE OF ESTIMATES
The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised. C.

FIXED ASSETS
Tangible Assets
Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.
Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

D.

LEASES
a)
Operating Leases: Rentals are expensed on a straight line basis with reference to the lease terms and other considerations. b)

E.

Finance leases prior to 1st April, 2001: Rentals are expensed with reference to lease terms and other considerations. (ii)

c)

(i)

Finance leases on or after 1st April, 2001: The lower of the fair value of the assets and present value of the minimum lease rentals is capitalised as Fixed Assets with corresponding amount disclosed as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to Profit and Loss Statement.

However, rentals referred to in (a) or (b) (i) above and the interest component referred to in (b) (ii) above, pertaining to the period upto the date of commissioning of the asset are capitalised.

DEPRECIATION, AMORTISATION AND DEPLETION
Tangible Assets
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV)
Method except in case of assets pertaining to Refining segment and SEZ units / developer where depreciation is provided on Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013 except in respect of the following assets, where useful life is different than those prescribed in Schedule II are used;

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

SIGNIFICANT ACCOUNTING POLICIES
Particular

Depreciation

Fixed Bed Catalyst (useful life: 2 years or more)
Fixed Bed Catalyst (useful life: up to 2 years)
Assets acquired from 1st April, 2001 under finance lease
Premium on Leasehold Land

Over its useful life as technically assessed
100% depreciated in the year of addition
Over the period of lease term
Over the period of lease term

In respect of additions or extensions forming an integral part of existing assets and insurance spares, including incremental cost arising on account of translation of foreign currency liabilities for acquisition of Fixed Assets, depreciation is provided as aforesaid over the residual life of the respective assets.
Intangible Assets
These are amortised as under:
Particular

Amortisation / Depletion

Technical Know-How
Computer Software
Development Rights

Over the useful life of the underlying assets
Over a period of 5 years
Depleted in proportion of oil and gas production achieved vis-a-vis the proved reserves
(net of reserves to be retained to cover abandonment costs as per the production sharing contract and the Government of India’s share in the reserves, where applicable) considering the estimated future expenditure on developing the reserves as per technical evaluation Over the period of agreement of right to use, provided that in case of jetty, the aggregate amount amortised to date is not less than the aggregate rebate availed by the Company.

Others

F.

IMPAIRMENT
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

G.

FOREIGN CURRENCY TRANSACTIONS
a.
Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.
b.

Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

c.

Non-monetary foreign currency items are carried at cost.

d.

In respect of integral foreign operations, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transaction. Monetary assets and liabilities are restated at the year end rates.

e.

Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Statement, except in case of long term liabilities, where they relate to acquisition of
Fixed Assets, in which case they are adjusted to the carrying cost of such assets.

H.

INVESTMENTS
Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non Current investments are stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary.

I.

INVENTORIES
Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any, except in case of by-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

209

210

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

SIGNIFICANT ACCOUNTING POLICIES
Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products are determined on weighted average basis.
J.

REVENUE RECOGNITION
Revenue is recognised only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts.
Dividend income is recognised when the right to receive payment is established.
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.
EXCISE DUTY / SERVICE TAX
Excise duty / Service tax is accounted on the basis of both, payments made in respect of goods cleared / services provided and provisions made for goods lying in bonded warehouses.

K.

EMPLOYEE BENEFITS
Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.
These benefits include performance incentive and compensated absences.
Post-Employment Benefits
Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund,
Superannuation Fund and Pension Scheme. The Company’s contribution is recognised as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.
Defined Benefit Plans
The liability in respect of defined benefit plans and other post-employment benefits is calculated using the Projected
Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees’ services. Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Profit and Loss Statement.
Employee Separation Costs
Compensation to employees who have opted for retirement under the voluntary retirement scheme of the
Company is charged to the Profit and Loss Statement in the year of exercise of option by the employee.

L.

BORROWING COSTS
Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

M.

RESEARCH AND DEVELOPMENT EXPENSES
Revenue expenditure pertaining to research is charged to the Profit and Loss Statement. Development costs of products are charged to the Profit and Loss Statement unless a product’s technological feasibility has been established, in which case such expenditure is capitalised.

N.

FINANCIAL DERIVATIVES AND COMMODITY HEDGING TRANSACTIONS
In respect of derivative contracts, premium paid, gains/losses on settlement and losses on restatement are recognised in the Profit and Loss Statement except in case where they relate to the acquisition or construction of
Fixed Assets, in which case, they are adjusted to the carrying cost of such assets.

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

SIGNIFICANT ACCOUNTING POLICIES
O.

INCOME TAXES
Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.
Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

P.

PREMIUM ON REDEMPTION OF BONDS / DEBENTURES
Premium on redemption of bonds/debentures, net of tax impact, are adjusted against the Securities Premium
Reserve.

Q.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made.
Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.
Contingent assets are neither recognised nor disclosed in the financial statements.

R.

ACCOUNTING FOR OIL AND GAS ACTIVITY
The Company has adopted Full Cost Method of accounting for its’ Oil and Gas activities and all costs incurred are accumulated considering the country as a cost centre. Costs incurred on acquisition of interest in oil and gas blocks and on exploration and evaluation are accounted for as Intangible Assets under Development. Upon a reserve being either ‘proved’ or deemed to be ‘dry’, the costs accumulated in Intangible Assets under Development are capitalised to intangible assets. Development costs incurred thereafter in respect of ‘proved’ reserves are capitalised to the said intangible asset. All costs relating to production are charged to the Profit and Loss Statement.
Oil and Gas Joint Ventures are in the nature of Jointly Controlled Assets. Accordingly, assets and liabilities as well as income and expenditure are accounted on the basis of available information on a line-by-line basis with similar items in the Company’s financial statements, according to the participating interest of the Company.

211

212

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.
As at
31st March, 2015

5,000

5,000

1,000

1,000

6,000

1.

(` in crore)
As at
31st March, 2014

6,000

SHARE CAPITAL
Authorised Share Capital:
500,00,00,000 Equity Shares of ` 10 each
(500,00,00,000)
100,00,00,000 Preference Shares of ` 10 each
(100,00,00,000)

Issued, Subscribed and Paid up:
323,56,88,765 Equity Shares of ` 10 each fully paid up
(323,19,01,858)
Less: Calls in arrears - by others
[` 3,113 (Previous Year ` 3,113)]

3,236
-

1.2

1.3
1.4

3,232
3,232

45,04,27,345 Shares were allotted on conversion / surrender of Debentures and Bonds, conversion of Term
(45,04,27,345) Loans, exercise of Warrants, against Global Depository Shares (GDS) and re-issue of Forfeited
Equity Shares, since inception.
17,18,83,624 Shares held by subsidiaries, which were allotted pursuant to the Schemes of Amalgamation sanctioned
(17,18,83,624) by the Hon’ble High Courts in the previous years, do not have voting rights and are not eligible for
Bonus Shares
4,62,46,280 Shares were bought back and extinguished in the last five years.
(4,62,46,280)

The details of shareholders holding more than 5% shares :
Name of the Shareholder

Life Insurance Corporation of India

1.5

3,236
3,236

TOTAL

1.1

3,232

As at
31st March, 2015
No. of Shares
% held
29,69,44,782
9.18

The reconciliation of the number of shares outstanding is set out below :
Particulars

Equity Shares at the beginning of the year
Add : Shares issued on exercise of Employee Stock Options
Equity Shares at the end of the year

As at
31st March, 2015
No. of Shares
323,19,01,858
37,86,907
323,56,88,765

As at
31st March, 2014
No. of Shares
% held
26,35,20,679
8.15

As at
31st March, 2014
No. of Shares
322,86,63,382
32,38,476
323,19,01,858

1.6

The Company has reserved issuance of 12,67,18,207 (Previous year 13,05,05,114) Equity Shares of ` 10 each for offering to Eligible Employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS).
During the year the Company has granted 45,419 options which includes 21,367 options at a price ` 936 per option,
13,052 options at a price of ` 961 per option and 11,000 options at a price of ` 843 per option plus all applicable taxes, as may be levied in this regard on the Company (Previous year 71, 866 options which includes 60,866 options at a price of ` 860 per option and 11,000 options at a price of ` 880 per option plus all applicable taxes, as may be levied in this regard on the Company) to the Eligible Employees. The options would vest over a maximum period of 7 years or such other period as may be decided by the Human Resources, Nomination and Remuneration Committee from the date of grant based on specified criteria.

1.7

Share Application Money Pending Allotment represents application money received on account of Employees
Stock Option Scheme.

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

213

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2015

2.

As at
31st March, 2014

291

291

48

48

RESERVES AND SURPLUS
Capital Reserve
As per last Balance Sheet

Capital Redemption Reserve
As per last Balance Sheet

Securities Premium Reserve
As per last Balance Sheet

Less: Calls in arrears - by others
[` 1,93,288 (Previous Year ` 1,93,288)]

47,850

47,645

239

205

48,089

Add : On issue of shares

47,850

-

48,089

47,850

1,117

1,117

Debentures Redemption Reserve
As per last Balance Sheet

Revaluation Reserve
As per last Balance Sheet

-

Less: Transferred to Profit and Loss Account

1,055

-

1,055
-

-

General Reserve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Less: Transferred to Profit and Loss Account

1,35,210

1,18,000

18,000

18,000

-

790
1,53,210

1,35,210

Profit and Loss Account
As per last Balance Sheet

9,326

8,610

22,719

21,984

32,045

Add: Profit for the year

30,594

318

-

18,000

18,000

2,944

2,793

Less: Appropriations
Adjustment relating to Fixed Assets (Refer Note No. 10.9)
Transferred to General Reserve

Proposed Dividend on Equity Shares
[Dividend per Share ` 10 /- (Previous year ` 9.5/-)]
Tax on Dividend

615

475
10,168

TOTAL

9,326

2,12,923

1,93,842

214

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2014
Non
Current
Current

As at
31st March, 2015
Non
Current
Current

3.

LONG TERM BORROWINGS
Secured
Non Convertible Debentures
Long Term Maturities of Finance Lease Obligations
(Refer Note No. 10.8 and 32)

1,270
94

164
27

1,434
122

434
25

1,364

191

1,556

459

20,303
54,560
74,863
76,227

857
7,428
8,285
8,476

9,941
51,211
61,152
62,708

4,025
4,025
4,484

Unsecured
Bonds
Term Loans- from Banks
TOTAL

3.1

Non Convertible Debentures referred above to the extent of:
a)
` 533 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at Patalganga Complex of the Company.
b) ` 500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar
Complex (SEZ unit) of the Company.
c)
` 370 crore are secured by way of first mortgage / charge on the immovable properties situated at Hazira
Complex and at Jamnagar Complex (other than SEZ units) of the Company.
d)
` 31 crore are secured by way of first mortgage / charge on certain properties situated at Surat in the State of
Gujarat and on Fixed Assets situated at Allahabad Complex of the Company.

3.2

Maturity Profile and Rate of Interest of Non Convertible Debentures are as set out below :

Rate of Interest
Zero Coupon Debentures
6.25%
8.75%
10.75%
TOTAL

2020-21
500
500

Non Current
2018-19
2017-18
134
133
370
504
133

3.3

TOTAL
400
500
370
1,270

Finance Lease Obligations are secured against Leased Assets.

3.4

2016-17
133
133

(` in crore)
Current
2015-16
31
133
164

Maturity Profile and Rate of Interest of Bonds are as set out below :

Rate of Interest
2.86%
4.13%
4.88%
6.21%
6.24%
6.34%
6.51%
6.61%
7.63%
8.25%
9.38%
10.25%
10.38%
10.50%
TOTAL

Non Current
2096-97 2046-47 2044-45 2027-28 2026-27 2024-25 2018-19 2016-17
6,250
4,687
313
1,013
238
813
1,062
31
212
138
78
408
60
78
60
4,687
31
350
6,250
1,300
2,547

(` in crore)
Current
TOTAL 2015-16
857
6,250
4,687
313
1,013
238
813
1,062
31
212
138
78
408
60
15,303
857

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

215

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
3.5

Bonds include 5.875% Senior Perpetual Notes (the "Notes") of ` 5,000 crore. The Notes have no fixed maturity date and the Company will have an option, from time to time, to redeem the Notes, in whole or in part, on any semiannual interest payment date on or after February 5, 2018 at 100% of the principal amount plus accrued interest.

3.6

Maturity Profile of Unsecured Term Loans are as set out below :
(` in crore)

Term Loans- from Banks

6-12 years
11,893

Maturity Profile
2-5 years
42,667

TOTAL
54,560

1 year
7,428

As at
31st March, 2015

4.

(` in crore)
As at
31st March, 2014

12,956

12,376

279
12,677

161
12,215

DEFERRED TAX LIABILITY (NET)
Deferred Tax Liability
Related to Fixed Assets

Deferred Tax Assets
Disallowances under the Income Tax Act, 1961
TOTAL

5.

LONG TERM PROVISIONS
During the current financial year, Tapti Joint Venture (JV) achieved resolution with Government of India (GoI) that the Tapti JV will assume responsibility for abandonment obligation of Tapti Part B facilities. Accordingly, the
Company has recognized a liability related to dismantling and abandonment of facilities based on the estimated future expenditure. Further the Company has also recognized similar liabilities for D1D3 and MA fields based on the estimates provided in the development plan. Aggregate provision recognised is ` 1,404 crore ($ 224.70 Million)
As at
31st March, 2015

6.

(` in crore)
As at
31st March, 2014

SHORT TERM BORROWINGS
Secured
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans

655
17

600
7,389
672

7,989

-

1,199

12,242
12,914

13,582
22,770

From Others
Rupee Loans

Unsecured
Other Loans and Advances
From Banks
Foreign Currency Loans - Buyers/Packing Credit
TOTAL

6.1

Working Capital Loans from Banks referred above to the extent of:
(a)

` 672 crore (Previous Year ` 3,906 crore) are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares (not relating to plant and machinery), book debts, outstanding monies, receivables, claims, bills, materials in transit, etc. save and except receivables of
Oil and Gas Division.

(b)

` Nil (Previous Year ` 3,105 crore) are secured by way of lien on Fixed Deposits and ` Nil (Previous Year ` 978 crore) are secured by lien on Government Securities.

216

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
6.2

Working Capital Loan from Others of ` Nil (Previous Year ` 1,199 crore) are secured by lien on Government Securities.
As at
31st March, 2015

7.

(` in crore)
As at
31st March, 2014

131
54,339
54,470

108
57,754
57,862

TRADE PAYABLES
Micro, Small and Medium Enterprises
Others
TOTAL

7.1

The details of amounts outstanding to Micro, Small and Medium Enterprises based on information available with the Company is as under:
As at
31st March, 2015

As at
31st March, 2014

-

-

-

-

As at
31st March, 2015

(` in crore)
As at
31st March, 2014

8,449
27

4,459
25

Particulars
Principal amount due and remaining unpaid
Interest due on above and the unpaid interest
Interest paid
Payment made beyond the appointed day during the year
Interest due and payable for the period of delay
Interest accrued and remaining unpaid
Amount of further interest remaining due and payable in succeeding years

8.

OTHER CURRENT LIABILITIES
Current maturities of Long Term Debt
Current maturities of Finance Lease Obligations
(Refer Note No. 3 and 10.8)
Current maturities of Deferred Payment Liabilities
Interest accrued but not due on borrowings
Unclaimed Dividends #
Application money received and due for refund #
Unclaimed/ Unpaid matured Debentures and Interest accrued thereon #
Other Payables *
TOTAL

8,476
3
254
199
1
1
10,129
19,063

4,484
3
194
175
1
1
5,909
10,767

#

These figures do not include any amounts due and outstanding, to be credited to Investor Education and Protection Fund except
` 15 crore (Previous Year ` 12 crore) which is held in abeyance due to legal cases pending.

*

Includes Statutory Dues, Security Deposit, Creditors for Capital Expenditure and Advance from Customers.

As at
31st March, 2015

9.

(` in crore)
As at
31st March, 2014

237
2,944
615
77
981
4,854

190
2,793
475
60
649
4,167

SHORT TERM PROVISIONS
Provisions for Employee Benefits (Refer Note No. 23.1)
Proposed Dividend
Tax on Dividend
Provision for Wealth Tax
Other Provisions #
TOTAL

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

217

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
#

The Company had recognised liability based on substantial degree of estimation for excise duty payable on clearance of goods lying in stock as on 31st March, 2014 of ` 300 crore as per the estimated pattern of dispatches. During the year, ` 300 crore was utilised for clearance of goods. Provision recognised under this class for the year is ` 489 crore which is outstanding as on 31st
March, 2015. Actual outflow is expected in the next financial year. The Company had recognised customs duty liability on goods imported under various export incentive schemes of ` 346 crore as at 31st March, 2014. During the year, further provision of `
538 crore was made and sum of ` 395 crore were reversed on fulfillment of export obligation. Closing balance on this account as at 31st March, 2015 is ` 489 crore. Other class of provisions where recognition is based on substantial degree of estimation relate to disputed customer / supplier / third party claims, rebates or demands against the Company. Any additional information in this regard can be expected to prejudice seriously the position of the Company.
(` in crore)
Gross Block

Description

Depreciation / Amortisation / Depletion

As at Additions / Deductions/
01-04 2014 Adjustment Adjustments

As at
31-03-2015

As at
01-04-2014

For the Deductions/
Year# Adjustments

Net Block

As at
31-03-2015

As at
31-03-2015

As at
31-03-2014

1,253

10. FIXED ASSETS
TANGIBLE ASSETS :
OWN ASSETS :
Leasehold Land

1,593

107

-

1,700

340

58

-

398

1,302

Freehold Land

1,497

101

-

1,598

-

-

-

-

1,598

1,497

Buildings

9,169

255

2

9,422

3,361

555

-

3,916

5,506

5,808

Plant & Machinery

1,40,810

4,453

885

1,44,378

76,094

5,085

782

80,397

63,981

64,716

Electrical Installations

8,337

182

-

8,519

2,700

454

-

3,154

5,365

5,637

Equipments $

2,384

1,062

7

3,439

1,489

428

3

1,914

1,525

895

Furniture & Fixtures

524

21

2

543

372

63

1

434

109

152

Vehicles

429

98

34

493

235

84

26

293

200

194

Ships

387

-

-

387

281

13

-

294

93

106

46

-

-

46

30

2

-

32

14

16

1,65,176

6,279

930

1,70,525

84,902

6,742

812

90,832

79,693

80,274

318

-

-

318

224

9

-

233

85

94

10

-

-

10

10

-

-

10

-

-

328

-

-

328

234

9

-

243

85

94

1,65,504

6,279

930

1,70,853

85,136

6,751

812

91,075

79,778

80,368

3,449

48

-

3,497

2,183

187

-

2,370

1,127

1,266

869

4

-

873

623

82

-

705

168

246

43,564

8,096

-

51,660

24,218

2,068

-

26,286

25,374

19,346

Aircrafts & Helicopters
SUB-TOTAL
LEASED ASSETS :
Plant & Machinery
Ships
SUB-TOTAL
TOTAL (A)
INTANGIBLE ASSETS : *
Technical Knowhow Fees
Software
Development Rights
Others

9,179

-

-

9,179

999

64

-

1,063

8,116

8,180

TOTAL (B)

57,061

8,148

-

65,209

28,023

2,401

-

30,424

34,785

29,038

TOTAL (A + B)

2,22,565

14,427

930

2,36,062

1,13,159

9,152

812

1,21,499

1,14,563

1,09,406

PREVIOUS YEAR

2,13,154

10,531

1,120

2,22,565

1,03,406

10,771

1,018

1,13,159

1,09,406

Capital Work-in-Progress

65,178

32,673

Intangible Assets under
Development

10,575

9,043

$

Includes Office Equipments

*

Other than internally generated

#

Depreciation for the year includes depreciation of ` 182 crore (Previous Year ` 137 crore) capitalised during the year.

10.1 Leasehold Land includes ` 203 crore (Previous Year ` 203 crore) in respect of which lease-deeds are pending execution.
10.2 Buildings includes :
i)

Cost of shares in Co-operative Housing Societies ` 1 crore (Previous Year ` 1 crore).

ii)

` 5 crore (Previous Year ` 5 crore) in respect of which conveyance is pending.

iii)

` 93 crore (Previous Year ` 93 crore) in shares of Companies / Societies with right to hold and use certain area of Buildings.

218

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
10.3 Intangible Assets - Others includes :
i)
Jetties amounting to ` 812 crore (Previous Year ` 812 crore), the Ownership of which vests with Gujarat
Maritime Board. ii) ` 8,367 crore (Previous Year ` 8,367 crore) in preference shares of subsidiaries and lease premium paid with right to hold and use Land and Buildings.

10.4 Capital Work-in-Progress and Intangible Assets under Development includes :
i)

` 6,770 crore (Previous Year ` 4,204 crore) on account of Project Development Expenditure.

ii)

` 16,346 crore (Previous Year ` 10,951 crore) on account of cost of construction materials at site.

10.5 Project Development Expenditure
(in respect of Projects up to 31st March, 2015, included under Capital Work-in-Progress and Intangible Assets under
Development)
2014-15
4,204

Opening Balance
Add:

Less:

(` in crore)
2013-14
2,795

Transferred from Profit and Loss Account
(Refer Note no. 26)
Interest Capitalised (Refer Note no. 24)

715
701

1,573
1,062
2,635
6,839
69
6,770

Project Development Expenses Capitalised during the year

Closing Balance

1,416
4,211
7
4,204

10.6 The Gross Block of Fixed Assets includes ` 38,122 crore (Previous Year ` 38,122 crore) on account of revaluation of
Fixed Assets carried out since inception.
10.7 Additions in Plant and Machinery, Capital Work-in-Progress, Intangible Assets - Development Rights and Intangible
Assets under Development includes ` 4,709 crore (net loss) [Previous Year ` 8,678 crore (net loss)] on account of exchange difference during the year.
10.8 i)

In respect of Fixed Assets acquired on finance lease on or after 1st April, 2001, the minimum lease rentals outstanding as on 31st March, 2015 are as follows:

Within one year
Later than one year and not later than five years
TOTAL

ii)

Total Minimum Lease
Payments outstanding
As at 31st March
2015
2014
37
37

Future interest on
Outstanding Lease
Payments
2014-15
2013-14
10
12

(` in crore)
Present value of Minimum Lease Payments
As at 31st March
2015
2014
27
25

108

146

14

24

94

122

145

183

24

36

121

147

General Description of Lease Terms:
Assets are taken on Lease over a period of 5 to 10 years.

iii)

Fixed Assets taken on finance lease prior to 1st April, 2001, amount to ` 444 crore (Previous Year ` 444 crore).
Future obligations towards lease rentals under the lease agreements as on 31st March, 2015 amount to
` 1 crore (Previous Year ` 2 crore).

Within one year ` 44,00,000 (Previous Year ` 44,00,000)
Later than one year and not later than five years
TOTAL

2014-15
1
1

(` in crore)
2013-14
2
2

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

219

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
10.9 Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortisation and Depletion. Accordingly the unamortised carrying value is being depreciated / amortised over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to ` 318 crore.

As at
31st March, 2015

11.

(` in crore)
As at
31st March, 2014

NON-CURRENT INVESTMENTS
(Long Term Investments)
(Valued at cost less other than temporary diminution in value, if any)

Trade Investments
In Equity Shares - Unquoted, fully paid up
1,00,00,000 Petronet India Limited of ` 10 each
(1,00,00,000)

10

10

10

10

64

64

1

1

4

4

-

-

69

69

2,000

2,000

In Equity Shares of Associate Companies Unquoted, fully paid up
64,29,20,000
(64,29,20,000)
62,63,125
(62,63,125)
11,08,500
(11,08,500)
52,00,000
(52,00,000)

Gujarat Chemical Port Terminal Company
Limited of ` 1 each
Indian Vaccines Corporation Limited of ` 10 each
Reliance Europe Limited of Sterling
Pound 1 each
Reliance Utilities and Power Private
Limited Class ‘A’ shares of ` 1 each
[` 40,40,000 (Previous Year ` 40,40,000)]

In Preference Shares of Associate Company Unquoted, fully paid up
50,00,00,000 9% Non-Cumulative Redeemable Preference
(50,00,00,000) Shares of Reliance Gas Transportation
Infrastructure Limited of ` 10 each

2,000
Total Trade Investments (A)

2,000
2,079

2,079

Other Investments
In Equity Shares of Associate Company Quoted, fully paid up
68,60,064 Reliance Industrial Infrastructure Limited
(68,60,064) of ` 10 each

16

16

16

16

-

-

-

-

1

1

752

-

In Equity Shares of Associate Company Unquoted, fully paid up
22,500 Reliance LNG Limited of ` 10 each
(22,500) [` 2,25,000 (Previous Year ` 2,25,000)]

In Equity Shares of Subsidiary Companies Unquoted, fully paid up
12,50,000 Reliance Energy Generation and Distribution
(12,50,000) Limited of ` 10 each
12,11,60,000 Reliance Ethane Holding Pte. Ltd. of $ 1 each
(-)

220

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015

15,00,00,000
(50,000)
2,00,000
(2,00,000)
14,75,04,400
(14,75,04,400)
42,450
(42,450)
29,74,74,90,000
(22,69,44,90,000)
5,50,000
(-)
5,66,70,00,000
(5,66,70,00,000)
20,20,200
(20,20,200)
26,91,150
(26,91,150)

Reliance Gas Pipelines Limited of ` 10 each
(Previous Year ` 5,01,256)
Reliance Global Business B.V. of Euro 0.01 each
[` 1,25,400 (Previous Year ` 1,25,400)]
Reliance Industrial Investments and
Holdings Limited of `10 each
Reliance Industries (Middle East)
DMCC of AED 1000 each
Reliance Jio Infocomm Limited of `10 each
Reliance Jio Messaging Services Private Limited of ` 10 each
Reliance Retail Ventures Limited of
` 10 each
Reliance Strategic Investments Limited of ` 10 each
Reliance Ventures Limited of ` 10 each

As at
31st March, 2015
150

(` in crore)
As at
31st March, 2014
-

-

-

148

148

46

46

29,747

22,695

1

-

5,667

5,667

2

2

2,351

2,351

38,865

30,910

1,089
1,089

-

In Corpus of Trust-Unquoted
Investment in Corpus of Independent Media Trust

39,970

30,926

In Preference Shares of Subsidiary Companies Unquoted, fully paid up
63,436 5% Non Cumulative Compulsorily Convertible
(63,436) Preference Shares of Reliance Industries
(Middle East) DMCC of AED 1000 each
4,02,800 9% Non Cumulative Compulsorily Convertible
(4,02,800) Preference Shares of Reliance Strategic
Investments Limited of ` 1 each
5,93,90,00,000 Reliance Global Business B.V.
(8,04,83,61,211) ‘A’ Class Shares of Euro 0.01 each

85

85

113

113

422

572
620

770

In Debentures of Subsidiary Companies - Unquoted, fully paid up
2,79,90,000 0% Unsecured Convertible Debentures
(2,79,90,000) of Reliance Industrial Investments and
Holdings Limited of ` 100 each
8,83,143 0% Unsecured Convertible Redeemable
(8,83,143) Debentures of Reliance Industrial Investments and Holdings Limited of ` 5,000 each
1,10,00,00,000 Zero Coupon Unsecured Optionally Fully
(-) Convertible Debentures of Reliance Industrial
Investments and Holdings Limited of ` 10 each
1,11,60,000 Zero Coupon Unsecured Optionally Fully
(-) Convertible Debentures of Reliance Universal
Traders Private Limited of ` 10 each
1,23,60,00,000 Zero Coupon Unsecured Optionally Fully
(-) Convertible Debentures of Reliance Prolific
Traders Private Limited of ` 10 each

280

280

442

442

1,100

-

11

-

1,236

-

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

221

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015

2,97,40,000 Zero Coupon Unsecured Optionally Fully
(-) Convertible Debentures of Reliance Prolific
Commercial Private Limited of ` 10 each
1,97,90,000 Zero Coupon Unsecured Optionally Fully
(-) Convertible Debentures of Reliance Ambit Trade
Private Limited of ` 10 each
6,51,50,000 Zero Coupon Unsecured Optionally Fully
(-) Convertible Debentures of Reliance Gas
Pipelines Limited of ` 10 each

As at
31st March, 2015
30

(` in crore)
As at
31st March, 2014
-

20

-

65

-

3,184

722

-

-

3,551

5,357

In Government Securities-Unquoted
6 Years National Savings Certificate
(Deposited with Sales Tax Department and other Government Authorities )
[` 87,420 (Previous Year ` 1,37,420 )]

In Government Securities-Quoted
In Fixed Maturity Plan - Quoted fully paid up
(25,90,00,000)
1,50,75,101
(6,00,00,000)
27,98,82,768
(63,10,00,000)
20,93,53,761
(15,50,00,000)
5,00,00,000
(22,80,00,000)
14,01,55,380
(14,00,00,000)
3,50,00,000
(80,00,00,000)
(6,00,00,000)
77,12,14,635
(83,50,00,000)
3,79,28,740
(28,80,00,000)
(10,50,00,000)
5,45,14,579
(40,00,00,000)
(19,50,00,000)
3,00,00,000
(12,00,00,000)
(2,50,00,000)
32,99,25,439
(30,00,00,000)

Axis Fixed Maturity Plan (Series 47/49/52/55/59/60) - Growth
Baroda Pioneer Fixed Maturity Plan (Series J/M/N) - Growth
Birla Sun Life Fixed Term Plan - (Series JA/JI/JQ/
JX/JR/KA/KC/KE/KJ/KM/KO/KP/KR/KT/MA/MD/
MK) - Growth
DSP Black Rock Fixed Term Plan (Series 36/37/146/149/150/151/152) - Growth
DWS Fixed Maturity Plan (Series 45/47/49/52/53/85) - Growth
DWS Fixed Maturity Plan Close Ended Debt Fund
- (Series 54/57/62/63/82/87)- Growth
HDFC Fixed Maturity Plan (Series 28/29/33) - Growth
HSBC Fixed Term - (Series 105) - Growth
ICICI Fixed Maturity Plan (Series 71/72/73/75/76) - Growth
IDFC Fixed Maturity Plan - (Series 21/49/50/51/
57/60/64/66/70/72/75/79/84/86) - Growth
JPMorgan India Fixed Maturity Plan (Series 30/33) - Growth
Kotak Fixed Maturity Plan - (Series 132/133/136/
141/142/145/146/147/149) - Growth
L&T Fixed Maturity Plan (Series IX/X) - (Plan B/H/J/M/Q/S/T) -Growth
LIC Nomura Mutual Fund Fixed Maturity Plan (Series 64/72/76/77/79/89/90) - Growth
Principal PNB Fixed Maturity Plan (Series B10) - Growth
Reliance Fixed Horizon Fund (Series 2/4/5/6/7/8/10/11/27/33) (Plan - XXV/XXVI/XXVII/XXVIII) - Growth

-

259

15

60

280

631

209

155

50

228

140

140

35

800

-

60

771

835

38

288

-

105

55

400

-

195

30

120

-

25

330

300

222

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015

22,78,25,006
(3,50,00,000)
23,93,60,369
(57,50,00,000)
(7,00,00,000)
(8,80,00,000)
2,74,08,274
(17,00,00,000)
27,37,96,672
(13,50,00,000)

Religare Fixed Maturity Plan - (Series XXI/XXII/
XXIV/XXV) - (Plan A/D/E/F/H) - Growth
SBI Debt Fund - (Series A/B - 1/2/3/4/5/6/8/9/10/1
1/16/17/47/49) - Growth
SBI Debt Fund - Double Indexation Fund
(Series A-14) - Growth
Sundaram Fixed Term Plan (Series FD/FI/EU/PL) - Growth
Tata Fixed Maturity Plan (Series 45/46) (Scheme C/K/M/N/Q/T) - Growth
UTI Fixed Term Income Fund - (Series XVII-I/XVIIIV/XVII-VII/XVII-XIII/XVII-XIV/XVIII-I/XX-VIII/XX-X/
XXI-XI) - Growth

As at
31st March, 2015
228

(` in crore)
As at
31st March, 2014
35

239

575

-

70

-

88

27

170

274

135

2,721

5,674

In Debentures or Bonds - Unquoted
820 Tata Sons Limited
(3,000)

83

300
83

300

In Debentures or Bonds - Quoted
100
(-)
55,350
(32,550)
42,62,612
(42,62,612)
8,050
(3,500)
11,250
(6,350)
(550)
39,44,752
(49,44,752)
9,49,946
(9,49,946)
42,79,543
(42,81,393)
950
(20)
12,100
(700)
950
(-)
(650)

Export Import Bank of India

10

-

4,389

3,293

426

426

805

350

1,126

635

-

55

395

494

95

95

1,203

1,385

Power Grid Corporation of India Limited

95

3

Rural Electrification Corporation Limited

1,212

70

94

-

-

58

Housing Development Finance Corporation
Limited
Indian Railway Finance Corporation Limited
Infrastructure Development Finance Company
Limited
LIC Housing Finance Limited
National Bank for Agriculture and Rural
Development
National Highways Authority of India
National Thermal Power Company Limited
Power Finance Corporation Limited

State Bank of India
Tata Steel Limited

Total Other Investments (B)
Total Non Current Investments (A + B)
Aggregate amount of quoted investments
Market Value of quoted investments
Aggregate amount of unquoted investments

9,850
59,979
62,058
16,138
16,950
45,920

6,864
50,613
52,692
17,911
18,039
34,781

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
As at
31st March, 2015
12.

(` in crore)
As at
31st March, 2014

6,717
1,666
19,989
685
202
29,259

4,407
1,499
21,740
728
62
28,436

LONG TERM LOANS AND ADVANCES
(Unsecured and Considered Good)
Capital Advances #
Deposits with Related Parties (Refer Note No. 32)
Loans and Advances to Related Parties (Refer Note No. 32)
Advance Income Tax (Net of Provision)
Other Loans and Advances (Refer Note No. 33.2 (e))
TOTAL
#

Includes ` 11,92,164 (Previous Year ` 5 crore) to Reliance Utilities and Power Private Limited, ` Nil (Previous Year ` 2 crore) to
Reliance Industrial Infrastructure Limited and ` 14,23,851 (Previous Year ` 9,49,234) to Model Economic Township Limited which are related parties.

12.1 Loans and Advances in the nature of Loans given to Subsidiaries and Associates:
A)

(i)

Loans and Advances in the nature of Loans to Subsidiaries (Excluding Debentures):
(` in crore)
Sr.
No.

Name of the Company

As at
31st
March,
2015

Maximum
Balance
during the year

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Reliance Industrial Investments and Holdings Limited
Reliance Ventures Limited
Reliance Strategic Investments Limited
Reliance Retail Limited
Reliance Exploration & Production DMCC
Reliance Brands Limited
Reliance Corporate IT Park Limited
Reliance Gas Pipelines Limited
Reliance Jio Infocomm Limited
Reliance Industries (Middle East) DMCC
TOTAL

17,159
249
2,121
2,791
33
22,353

19,787
2,579
5,114
1,737
78
3,536
135
1,867
565

As at
31st
March,
2014
18,941
14
471
1,737
78
945
33
22,219

Maximum
Balance
during previous year
20,555
4,351
1,158
1,737
78
32
1,290
33
400
-

All the above loans and advances have been given for business purposes.
(ii)

Loans and Advances in the nature of Loans to Associate :
(` in crore)
Sr.
No.

Name of the Company

1.

Gujarat Chemical Port Terminal Company Limited
TOTAL

As at
31st
March,
2015

Maximum
Balance
during the year 6
6

6

As at
31st
March,
2014
6
6

Maximum
Balance
during previous year
6

The above loan has been given for the purpose of capital expenditure.
(iii)

Loans and Advances shown above, fall under the category of ‘Long Term Loans & Advances’ in nature of
Loans and are re-payable within 3 to 5 years except Short Term Loans and Advances to Reliance Ventures
Limited and Reliance Strategic Investments Limited.

(iv)

All the above Loans and Advances are interest bearing except for an amount of ` 11,202 crore given to
Reliance Industrial Investments and Holdings Limited and ` 33 crore to Reliance Gas Pipelines Limited.

(v)

Loans to employees as per the Company’s policy are not considered.

223

224

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
B)

(i)

Investment by the Loanee in the shares of the Company
*None of the loanees and loanees of subsidiary companies have, per se, made investments in shares of the Company. These investments represent shares of the Company allotted as a result of amalgamation of erstwhile Reliance Petroleum Limited (amalgamated in 2001-02) and Indian Petrochemicals Corporation
Limited with the Company under the Schemes approved by the Hon’ble High Court of Judicature at
Bombay and Gujarat and certain subsequent inter se transfer of shares.
(` in crore)

Sr.
No.

Name of the Company

No. of Shares held in RIL

1.

*Reliance Aromatics and Petrochemicals Limited

2.

*Reliance Energy and Project Development Limited

(ii)

Amount of
Loan Given

Investment by Reliance Industrial Investments and Holdings Limited in Subsidiaries

2,98,89,898

71

20,58,000

303

In Equity Shares :
Sr. No.

Name of the Company

1

Office Depot Reliance Supply Solutions Private Limited - (Class A / B / C)

No. of Shares
13,69,27,614

2

Reliance Payment Solutions Limited

10,00,00,000

3

Reliance Sibur Elastomers Private Limited

8,83,86,308

4

Reliance Innovative Building Solutions Private Limited

6,46,93,950

5

Reliance Commercial Land & Infrastructure Limited

4,30,10,000

6

Kanhatech Solutions Private Limited

1,80,00,000

7

Reliance Jio Media Private Limited

1,10,10,000

8

Reliance Universal Enterprises Limited

64,25,000

9

Reliance Retail Insurance Broking Limited

40,00,000

10

Reliance Jio Digital Services Private Limited

31,55,000

11

Indiawin Sports Private Limited

26,50,000

12

Reliance Retail Finance Limited

20,20,000

13

Reliance Global Business B.V.

18,00,000

14

Reliance Chemicals Limited

10,10,600

15

Reliance Polyolefins Limited

10,10,000

16

Reliance Aromatics and Petrochemicals Limited

10,09,300

17

Reliance Energy and Project Development Limited

10,09,280

18

Reliance Exploration & Production DMCC

1,76,200

19

Reliance Ethane Holding Pte. Ltd.

1,00,000

20

Reliance Aerospace Technologies Limited

21

Reliance World Trade Private Limited

50,000
1,000

In Preference Shares :
Sr. No.

Reliance Jio Infocomm Limited

2

(iii)

Name of the Company

1

Reliance Exploration & Production DMCC

No. of Shares
12,50,00,000
14,66,913

Investment by Reliance Ventures Limited in Subsidiaries
In Equity Shares:
Sr. No.

Name of the Company

1

Model Economic Township Limited

No. of Shares
50,000

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

225

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(iv)

Investment by Reliance Strategic Investments Limited in Subsidiaries
In Equity Shares:
Sr. No.
1

Reliance Global Commercial Limited

25,500

2

(v)

Name of the Company

No. of Shares

Reliance Universal Commercial Limited

25,000

Investment by Reliance Corporate IT Park Limited in Subsidiaries
In Equity Shares:
Sr. No.

Name of the Company

1

No. of Shares

Strategic Manpower Solutions Limited

50,000
(` in crore)
As at
31st March, 2015

13.

As at
31st March, 2014

4,370

1,318

100

355

CURRENT INVESTMENTS
(Carried at lower of cost and quoted / fair value, including current portion of long term investment)

In Government Securities - Quoted
Collateral Borrowing and Lending Obligation - Unquoted
In Debentures or Bonds - Quoted, fully Paid up
4,850 Housing Development Finance Corporation Limited
(3,050)

486

303

695

10

20 Power Grid Corporation of India Limited
(20)

3

3

150 Rural Electrification Corporation Limited
(-)

15

-

145

-

6,950 Power Finance Corporation Limited
(100)

23,957 State Bank of India
(-)

1,344

316

215

-

In Debentures or Bonds - Unquoted, fully Paid up
2,150 Tata Sons Limited
(-)

In Fixed Maturity Plan - Quoted, fully Paid up
25,90,00,000 Axis Fixed Term Plan (2,50,00,000) (Series 34/47/49/52/55/59/60) - Growth

259

25

60

98

641

1,890

- Birla Sun Life Interval Income Fund (26,00,00,000) (Annual Plan VIII/IX/X) - Growth

-

260

- BNP Paribas Fixed Term Fund (13,50,00,000) (Series 24A/26A/26C/29B) - Growth

-

135

6,00,00,000 Baroda Pioneer Fixed Maturity Plan (9,80,00,000) (Series C/E/G/J/M/N) - Growth
64,10,00,000 Birla Sun Life Fixed Term Plan - (Series GA/GB/GF/GT/
(1,89,00,00,000) GV/HI/HK/HL/HM/HQ/HS/HV/HY/IA/JA/JE/JG/JI/JL/JN/
JO/JQ/JR/JT/JU/JX/JY/JZ/KA/KC/KD/KE/KF/KG/KH/KI/
KJ/KK/KN/KO/KP/KQ/KR/KS/KT) - Growth

226

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2015

As at
31st March, 2014

15,50,00,000 DSP Black Rock Fixed Maturity Plan - (Series 36/37/88/
(1,67,00,00,000) 89/91/93/95/103/104/105/107/108/109/110/113/117/
130/144/146/149/150/151/152/153/155) - Growth

155

1,670

22,80,00,000 DWS Fixed Maturity Plan - (Series 26/28/30/32/34/36/
(47,50,00,000) 42/43/45/46/47/48/49/50/52/53) - Growth

228

475

140

75

-

50

846

2,137

6,00,00,000 HSBC Fixed Term Plan (13,50,00,000) (Series 90/94/96/101-104/105) - Growth

60

135

2,98,46,064 ICICI Prudential Fixed Maturity Annual Interval Plan (19,99,03,904) (Series VI/VII) - (Plan C/D/F/I) - Cumulative

32

208

75

1,750

790

924

-

20

313

855

88

113

-

25

105

500

400

1,140

19,50,00,000 L & T Fixed Maturity Plan - (Series VII/VIII/IX/X) (33,70,00,000) (Plan A/B/D/G/I/J/H/L/M/Q/S/T) - Growth

195

337

18,00,00,000 LIC Nomura Fixed Maturity Plan - (Series 55/56/58/60/
(31,00,00,000) 62/63/64/66/68/72/73/75/76/77/79/81/86) - Growth

180

310

4

10

25

-

-

60

300

680

14,00,00,000 DWS Fixed Maturity Plan - Close Ended Debt Fund
(7,50,00,000) (Series 51/54/55/57/62/63) - Growth
- DWS Interval Fund Annual Plan - Growth
(5,00,00,000)
84,56,47,510 HDFC Fixed Maturity Plan - (Series 366D/369D/370D/
(2,13,70,00,000) 371D/372D/377D/384D/390D/398D/400D/434D/435
D/441D/447D/453D/478D/491D/504D/526D/531D/
540D/566D) - Growth

7,50,00,000 ICICI Prudential Fixed Maturity Plan (1,75,00,00,000) (Series 65/66/67/68/69/70/71) (Plan A/C/D/E/G/H/I/J/K/M) - Cumulative
79,00,00,000 ICICI Prudential Fixed Maturity Plan - (Series 72/73) (92,40,00,000) (Plan A/B/C/D/E/F/G/H/I/J/K/L/M/N/O/P/R/S/T) Growth
- IDBI Fixed Maturity Plan - (Series III) - Dividend
(2,00,00,000)
31,30,00,000 IDFC Fixed Maturity Plan - (Series 11/14/21/24/25/27/
(85,50,00,000) 31/32/33/34/49/50/51/54/57/59/60/64/65/66/67/69/
70/72/74/75/78/79/81/84/85/86) - Growth
8,79,22,280 IDFC Yearly Interval Fund - (Series I/II/III) - Growth
(11,07,54,164)
- JM Fixed Maturity Plan (2,50,00,000) (Series FXXIV) - (Plan C)- Growth
10,50,00,000 JPMorgan India Fixed Maturity Plan (50,00,00,000) (Series 12/13/16/18/21/30/31/32/33) - Growth
40,00,00,000 Kotak Fixed Maturity Plan - (Series 97/98/99/100/101/
(1,14,00,00,000) 102/104/105/106/107/110/111/112/114/116/118/119
/132/133/136/137/138/139/141/142/143/144/145/
146/147/149/152) - Growth

28,13,373 LIC Nomura Interval Fund - (Series 1) - Growth
(68,00,038)
2,50,00,000 Principal PNB Fixed Maturity Plan -Series B10
(-)
- Reliance Annual Interval Fund - (Series 1) - Growth
(4,95,01,683)
30,00,00,000 Reliance Fixed Horizon Fund (68,00,00,000) (Series XXII/XXIII/XXIV/XXV/XXVI) - Growth

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2015
- Reliance Yearly Interval Fund - (Series 3/6/8) - Growth
(24,78,28,132)

As at
31st March, 2014

-

250

3,50,00,000 Religare Fixed Maturity Plan (15,50,00,000) (Series XVII/XVIII/XXII) - (Plan A/B/D/F) - Growth

35

155

3,50,00,000 Religare Invesco Fixed Maturity Plan (19,50,00,000) (Series XIX/XXI/XXII) - (Plan A/C/E/F/G/H) - Growth

35

195

64,50,00,000 SBI Debt Fund - (Series 1/2/3/5/9/10/11/12/13/14/15/
(1,72,00,00,000) 16/17/25/28/29/32/33/34/36/37/38/39/41/47/48/49/
51/52/53/54) - Growth

645

1,720

8,80,00,000 Sundaram Fixed Term Plan - (Series DC/DF/DH/DO/
(31,00,00,000) DQ/DR/EW/EU/EX/EY/FB/FD/FF/FI/FJ) - Growth

88

310

170

969

-

40

135

1,420

17,00,00,000 Tata Fixed Maturity Plan - (Series 42/43/44/45/46) (96,90,00,000) (Scheme A/B/C/D/E/G/H/I/K/L/M/N/O/P/Q/T) - Growth
- UTI Fixed Income Interval Fund - Annual Interval Plan
(3,04,93,690) (Series - II/IV) - Growth
13,50,00,000 UTI Fixed Term Income Fund - (Series XIII-III/XIV-VIII/
(1,42,00,00,000) XV-I/XV-II/XV-III/XV-IV/XV-V/XV-VI/XV-VII/XV-X/XVI-I/
XVI-IV/XVI-VII/XVII-I/XVII-II/XVII-IV/XVII-V/XVII-VII/
XVII-X/XVII-XIII/XVII-XIV/XVII-XVI/XVII-XX/XVIII-I/
XVIII-III/XVIII-IV/XVIII-VII) - Growth

6,004

18,941

In Mutual Fund - Quoted
2,50,000 Canara Robeco Capital Protection Fund - Growth
(-) [` 25,00,000 (Previous Year ` Nil)]

-

-

200

-

150

-

18,69,31,029 Franklin India Income opportunities fund - Growth
(-)

300

-

26,80,90,641 Franklin India Low Duration Fund - Growth
(-)

400

-

3,25,53,638 Franklin India Savings Plus Fund - Growth
(-)

75

-

250

-

1,000

-

150

-

300

-

150

-

61,07,51,216 HDFC High Interest Fund Short Term Plan - Dividend
(-)

625

-

12,80,60,101 HDFC Income Fund - Growth
(-)

400

-

33,79,24,449 HDFC Medium Term Opportunities Fund - Dividend
(-)

350

-

14,23,59,900 Franklin India Corp Bond Opportunities Fund - Growth
(-)
3,25,87,726 Franklin India Income Builder Account - Growth
(-)

9,11,243 Franklin India Short Term Income Plan - Growth
(-)
97,58,08,342 HDFC Corporate Debt Opportunities Fund - Dividend
(-)
3,21,07,882 HDFC Dynamic Bond Fund - Growth
(-)
30,00,00,000 HDFC Floating Rate Income Fund (-) Long Term Plan - Dividend
5,30,69,730 HDFC Gilt Fund - Long Term - Growth
(-)

227

228

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2015
29,42,59,007
(-)
47,91,71,028
(-)
1,66,50,000
(-)
66,83,30,981
(-)
21,42,10,231
(-)
8,15,59,748
(-)
5,70,000
(-)
4,43,27,649
(-)
6,85,74,208
(-)

As at
31st March, 2014

HDFC Short Term Opportunities Fund - Dividend

300

-

HDFC Short Term Plan - Dividend

485

-

ICICI Prudential Nifty Exchange Traded Fund

149

-

IDFC Dynamic Bond Fund - Dividend

725

-

IDFC Money Manager Fund - Investment Plan Dividend
IDFC Super Saver Income Fund Short Term Plan - Growth
Kotak Nifty Exchange Traded Fund - Growth

225

-

200

-

50

-

Sundaram Growth Fund - Dividend

70

-

Sundaram Select Debt - Dividend

75

6,629

-

In Mutual Fund - Unquoted
(2,27,889)
12,45,78,631
(-)
7,59,94,772
(7,59,94,772)
1,98,28,31,662
(-)
9,73,33,060
(-)
6,07,43,008
(-)
60,94,85,042
(-)
7,41,06,213
(-)
29,22,23,922
(29,22,23,922)
2,29,32,203
(-)
28,92,79,309
(-)
22,34,01,784
(22,34,01,784)
4,95,70,718
(4,95,70,718)
15,82,42,871
(-)

Axis Banking Debt Fund - Growth

-

25

125

-

96

96

2,100

-

Birla Sun Life Income Plus - Growth

600

-

Birla Sun Life Index Fund - Dividend

150

-

Birla Sun Life Short Term Opportunities Fund Dividend
Birla Sun Life Treasury Optimizer Plan - Dividend

875

-

850

-

Birla Sun Life Dynamic Bond Fund - Growth

549

549

25

-

300

-

1,000

1,000

50

50

350

-

147

147

Axis Short Term Fund - Dividend
Axis Short Term Fund - Growth
Birla Sun Life Dynamic Bond Fund - Dividend

Birla Sun Life Enhanced Arbitrage Fund - Dividend
Birla Sun Life Short Term Fund - Dividend
Birla Sun Life Short Term Fund - Growth
DSP Black Rock Banking & PSU Debt Fund - Growth
DSP Black Rock Income Opportunities Fund - Growth

7,22,79,657 DSP Black Rock Short Term Fund - Growth
(7,22,79,657)

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2015
23,03,028 DSP Black Rock Strategic Bond Institutional Fund (-) Dividend

As at
31st March, 2014

250

-

2,43,52,942 DWS Arbitrage Fund - Dividend
(-)

25

-

7,15,76,496 DWS Banking and PSU Debt Fund - Dividend
(-)

75

-

2,46,06,581 DWS Insta Cash Plus Fund Super Institutional Plan (3,61,86,149) Bonus

243

600

2,40,93,515 DWS Mutual Fund Insta Cash Plus - Bonus
(2,40,93,515)

236

236

1,84,06,566 DWS Treasury Fund - Investment - Bonus
(1,84,06,566)

18

18

- DWS Treasury Fund - Investment - Growth
(11,79,24,798)

-

159

- Franklin India Savings Plus Fund - Growth
(3,25,53,638)

-

75

400

400

50,00,000 HDFC Debt Fund for Cancer Cure (50,00,000) 50% Regular Option - Dividend

5

5

- HDFC Floating Rate Income Fund (11,23,62,581) Long Term Plan - Growth

-

250

230

-

241

278

47,31,50,819 ICICI Prudential Banking and PSU Debt Fund - Dividend
(-)

475

-

3,61,78,141 ICICI Prudential Banking and PSU Debt Fund - Growth
(3,61,78,141)

50

50

110

55

200

200

66,48,88,122 ICICI Prudential Corporate Bond Fund - Dividend
(-)

675

-

18,12,46,791 ICICI Prudential Equity Arbitrage Fund - Dividend
(3,98,32,730)

255

55

- ICICI Prudential Gilt Fund - Dividend Reinvestment
(2,41,47,124)

-

25

475

-

125

-

1,025

-

-

200

75

-

29,63,61,644 HDFC Short Term Opportunities Fund - Growth
(29,63,61,644)

8,34,43,987 HDFC Liquid Fund - Growth
(-)
18,54,84,708 HDFC Medium Term Opportunities Fund - Growth
(21,41,12,926)

8,12,12,898 ICICI Prudential Blended Plan A - Dividend
(4,06,37,366)
11,08,46,926 ICICI Prudential Blended Plan B - Growth
(11,08,46,926)

47,47,16,615 ICICI Prudential Income Plan - Dividend
(-)
2,66,12,448 ICICI Prudential Long Term Gilt Fund - Growth
(-)
1,01,65,79,969 ICICI Prudential Short Term Plan - Dividend
(-)
- ICICI Prudential Ultra Short Term - Growth
(16,20,52,229)
7,50,00,000 ICICI Prudential Ultra Short Term Plan - Dividend
(-)

229

230

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2015
50,00,00,000 ICICI Regular Saving Fund - Dividend
(-)

As at
31st March, 2014

500

-

200

-

505

160

125

-

-

319

125

-

-

400

60,22,44,143 IDFC Super Saver Income Fund (-) Medium Term Plan - Dividend

625

-

10,88,83,711 IDFC Super Saver Income Fund (19,04,43,459) Short Term - Growth

275

475

16,56,58,516 IDFC Super Saver Income Fund (-) Short Term Plan - Dividend

175

-

-

25

200

-

- JPMorgan India Treasury Fund - Bonus
(61,49,62,892)

-

629

20,94,33,717 JM Arbitrage Advantage Fund - Bonus
(-)

208

-

44

44

199

199

-

25

3,81,67,259 Kotak Bond Fund - Plan A - Dividend
(-)

150

-

3,15,22,512 Kotak Bond Scheme - Plan A - Growth
(-)

125

-

13,40,05,771 Kotak Bond Short Term Plan - Growth
(13,40,05,771)

304

304

20,50,03,232 Kotak Equity Arbitrage Fund - Dividend
(10,68,70,464)

315

115

16,88,74,261 Kotak Income Opportunities Fund - Dividend
(-)

190

-

11,16,73,351 Kotak Medium Term Fund - Dividend
(-)

125

-

2,00,00,000 L&T Arbitrage Opportunities Fund
(-)

20

-

5,79,076 L&T Cash Bonus Liquid Fund
(16,54,740)

59

169

13,37,083 IDBI Liquid Fund - Growth
(-)
39,68,11,202 IDFC Arbitrage Fund - Dividend
(12,63,13,875)
10,35,81,344 IDFC Arbitrage Plus Fund - Dividend
(-)
- IDFC Banking Debt Fund - Growth
(29,82,16,282)
7,48,48,058 IDFC Government Securities Fund (-) Investment Plan - Growth
- IDFC Money Manager Fund - Investment Plan - Growth
(21,48,65,792)

- Indiabulls Short Term Fund - Growth
(2,50,000)
13,99,57,033 JPMorgan India Active Bond Fund - Dividend
(-)

4,50,68,027 JM Money Manager Fund - Super Plan - Bonus
(4,50,68,027)
19,71,60,883 JM Money Manager Fund - Super Plus Plan - Bonus
(19,71,60,883)
- JM Money Manager Fund Super Plan - Growth
(1,36,85,132)

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2015
- L&T Floating Rate Fund - Growth
(7,21,37,997)

As at
31st March, 2014

-

83

15,01,53,208 L&T Income Opportunity Fund - Dividend
(-)

150

-

10,00,92,744 L&T Short Term Opportunities Fund - Dividend
(-)

100

-

10,75,21,101 L&T Triple Ace Bond Fund - Bonus
(10,75,21,101)

133

133

11,76,732 LIC Nomura Liquid Fund - Growth
(10,76,394)

283

250

4,72,07,221 LIC Nomura Savings Plus Fund - Growth
(-)

100

-

-

25

100

-

50

-

11,53,39,989 Reliance Corporate Bond Fund - Growth
(-)

125

-

65,66,28,473 Reliance Floating Rate Fund -Short Term Plan - Dividend
(-)

675

-

350

-

1,000

-

1,425

-

65

115

1,55,32,291 Religare Invesco Arbitrage Fund - Dividend
(-)

20

-

2,33,47,858 Religare Invesco Growth Fund - Dividend
(-)

50

-

75

-

17,98,180 Religare Invesco Short Term Fund - Growth
(17,98,180)

295

295

5,08,30,350 SBI Arbitrage Opportunity Fund - Dividend
(-)

70

-

23,19,53,980 SBI Dynamic Bond Fund - Growth
(-)

400

-

3,18,960 SBI Premier Liquid Fund - Growth
(-)

70

-

39,21,38,152 SBI Short Term Debt Fund - Growth
(36,08,46,691)

537

487

17,81,54,863 Sundaram Flexible Fund Short Term Plan - Bonus
(17,81,54,863)

175

175

-

121

- Principal Bank CD Fund - Growth
(1,62,107)
9,52,48,074 Reliance Arbitrage Advantage Fund - Dividend
(-)
4,66,24,829 Reliance Corporate Bond Fund - Dividend
(-)

7,60,51,576 Reliance Income Fund - Growth
(-)
97,40,32,447 Reliance Regular Savings Fund - Debt Plan - Dividend
(-)
1,36,24,06,377 Reliance Short Term Fund - Dividend
(-)
6,03,55,015 Religare Invesco Arbitrage Fund - Bonus
(10,68,81,070)

5,58,353 Religare Invesco Short Term Fund - Dividend
(-)

- Sundaram Flexible Fund Short Term Plan - Growth
(6,20,51,677)

231

232

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2015
30,09,68,369 Sundaram Money Fund - Bonus
(17,58,87,636)

As at
31st March, 2014

272

272

9,57,31,798 Sundaram Select Debt Short Term Asset Plan - Bonus
(9,57,31,798)

100

100

34,20,77,650 Tata Short Term Bond Fund - Dividend
(-)

475

-

25,00,00,000 UTI Bond Fund - Dividend
(-)

250

-

300

-

239

715

12,62,99,078 UTI Income Opportunities Fund - Growth
(-)

160

-

8,73,988 UTI Liquid Fund - Cash Plan - Growth
(-)

200

-

52,77,23,010 UTI Short Term Income Fund - Institutional Plan (-) Dividend

550

-

35,25,25,179 UTI Short Term Income Fund - Institutional Plan (35,25,25,179) Growth

518

518

25,58,386 UTI Floating Rate Fund - Dividend
(-)
12,03,386 UTI Floating Rate Fund - Growth
(36,10,159)

26,186
3

In Treasury Bills - Quoted

10,626
15

In Commercial Paper - Unquoted
Housing Development Finance Corporation Limited

-

Small Industries Development Bank Of India Limited

230

369
230

369

In Certificate of Deposits - Unquoted
Andhra Bank

644

9

Canara Bank

2,624

44

-

187

Central Bank of India
IDBI Bank

461

-

Indian Bank

969

287

Oriental Bank of Commerce

736

263

-

71

UCO Bank

-

478

Union Bank of India

-

State Bank of Patiala

91
5,434

1,430

50,515

33,370

Aggregate amount of quoted investments

18,350

20,590

Market Value of quoted investments

19,158

21,655

Aggregate amount of unquoted investments

32,165

12,780

Total Current Investments

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

233

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
As at
31st March, 2015
18,974
5,209
9,409
2,872
87
36,551

23,454
6,546
10,071
2,789
72
42,932

As at
31st March, 2015

14.

(` in crore)
As at
31st March, 2014

(` in crore)
As at
31st March, 2014

INVENTORIES
Raw Materials (Including Material In Transit)
Stock-in-Process
Finished Goods
Stores, Chemicals and Packing Materials
Stock-in-Trade
TOTAL

15.

TRADE RECEIVABLES
(Unsecured and Considered Good)
Outstanding for a period exceeding six months

80

65

4,581
4,661

10,599
10,664

As at
31st March, 2015

(` in crore)
As at
31st March, 2014

15

21

1,002
10,554
11,571

996
32,207
33,224

11,571

3,400
3,400
36,624

Others
TOTAL

16.

CASH AND BANK BALANCES
Cash and Cash Equivalents:
Cash on Hand

Bank Balances:
In Current Accounts*
In Deposit **

Sub-Total
Other Bank Balances
In Deposit #

Sub-Total
TOTAL
Include towards Unclaimed Dividend of ` 199 crore (Previous Year ` 175 crore).

*
**

Includes Deposits of ` 10,64,942 (Previous Year ` 1 crore) with maturity of more than 12 months.

#

Deposits of ` Nil (Previous Year ` 3,400 crore) are given as lien against Short Term Borrowings.

16.1 Cash and Cash Equivalents includes deposits maintained by the Company with banks, which can be withdrawn by the Company at any point of time without prior notice or penalty on the principal.
As at
31st March, 2015

17.

(` in crore)
As at
31st March, 2014

6,763

4,366

2,490
988
2,066
12,307

2,727
681
3,503
11,277

SHORT TERM LOANS AND ADVANCES
(Unsecured and Considered Good)
Loans and Advances to Related Parties
(Refer Note No. 32)
Balance with Customs, Central Excise Authorities
Deposits
Others#
TOTAL
#

Includes primarily Interest Receivable and Advance to Sundry Creditors.

234

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
As at
31st March, 2015
547
547

466
466

2014-15

(` in crore)
2013-14

2,45,160
89,944
4,907
716
3,40,727

2,97,746
96,383
6,055
1,016
4,01,200

2014-15

18.

(` in crore)
As at
31st March, 2014

(` in crore)
2013-14

OTHER CURRENT ASSETS
Interest Accrued on Investment
TOTAL

19.

SALE OF PRODUCTS
Particulars of Sale of Products
Petroleum Products
Petrochemical Products
Oil & Gas
Others
TOTAL

20.

OTHER INCOME
Interest
From Current Investments
From Long Term Investments
From Others

301
1,054
4,059

442
1,025
5,005
5,414

6,472

Dividend
From Current Investments
From Long Term Investments

243
7

88
3
250

91

Net Gain on Sale of Investments
From Current Investments
From Long Term Investments

1,011
2,035
3,046
11
8,721

Other Non Operating Income *
TOTAL
*

1,716
632
2,348
25
8,936

Other Non Operating Income includes income from Finance Lease of ` Nil (Previous Year ` 6,85,777).

(` in crore)

21.

2014-15
% of Consumption

(` in crore)

2013-14
% of Consumption

2,32,867
23,131
2,55,998

90.96
9.04
100.00

2,95,338
33,975
3,29,313

89.68
10.32
100.00

COST OF MATERIALS CONSUMED
Imported
Indigenous
TOTAL

21.1 Particulars of Materials Consumed
(` in crore)
Particulars
Crude Oil
Others
TOTAL

2014-15
2,37,505
18,493
2,55,998

2013-14
2,98,950
30,363
3,29,313

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

235

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
2014-15

22

2013-14

CHANGES IN INVENTORIES OF FINISHED GOODS, STOCKIN-PROCESS AND STOCK-IN-TRADE
Inventories (at close)
Finished Goods / Stock-in-Trade
Stock-in-Process

9,496
5,209

10,143
6,546
14,705

16,689

Inventories (at commencement)
Finished Goods / Stock-in-Trade
Stock-in-Process

10,143
6,546
16,689
41

Less: Capitalised during the year

10,872
6,361
17,233
132
16,648
1,943

23

17,101
412

2014-15

(` in crore)
2013-14

3,125
297
264
3,686

TOTAL

2,877
233
260
3,370

EMPLOYEE BENEFITS EXPENSE
Salaries and Wages
Contribution to Provident and other Funds
Staff Welfare Expenses
TOTAL

23.1 As per Accounting Standard 15 “Employee benefits”, the disclosures as defined in the Accounting Standard are given below :
Defined Contribution Plans
Contribution to Defined Contribution Plans, recognised as expense for the year is as under :
(` in crore)
2013-14
100
15
21

2014-15
93
14
30

Employer’s Contribution to Provident Fund
Employer’s Contribution to Superannuation Fund
Employer’s Contribution to Pension Scheme

The Company’s Provident Fund is exempted under section 17 of Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis statutory rate.
Defined Benefit Plan
The employees’ gratuity funds scheme managed by a Trust (Life Insurance Corporation of India for SEZ unit of the
Company) is a defined benefit plan.
I)

Reconciliation of opening and closing balances of Defined Benefit Obligation
(` in crore)
Compensated Absences
(Unfunded)

Gratuity
(Funded)
2014-15
Defined Benefit Obligation at beginning of the year
Current Service Cost
Interest Cost
Actuarial (Gain) / Loss
Benefits Paid
Defined Benefit Obligation at year end

2013-14

2014-15

2013-14

521
30
42
61
(39)
615

500
33
39
(16)
(35)
521

189
9
15
47
(24)
236

128
10
9
60
(18)
189

236

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
II)

Reconciliation of opening and closing balances of fair value of Plan Assets
(` in crore)
Gratuity
(Funded)
2014-15
521

503

42

Fair value of Plan Assets at beginning of year
Expected Return on Plan Assets

2013-14
39

Actuarial Gain / (Loss)

9

3

Employer Contribution

82

11

Benefits Paid

(39)

(35)

Fair value of Plan Assets at year end

615

521

51

42

Actual return on Plan Assets

III)

Reconciliation of fair value of Assets and Obligations
(` in crore)
Gratuity
(Funded)
As at 31st March

Compensated Absences
(Unfunded)
As at 31st March

2015

2014

2015

2014

Fair value of Plan Assets

615

521

-

-

Present value of Obligation

615

521

236

189

-

-

236

189

Amount recognised in Balance Sheet

IV) Expenses recognised during the year
(` in crore)
Gratuity
(Funded)

Compensated Absences
(Unfunded)

2014-15

2013-14

2014-15

2013-14

Current Service Cost

30

Interest Cost

42

33

9

10

39

15

9

(42)

(39)

-

-

Actuarial (Gain) / Loss

52

(19)

47

60

Net Cost

82

14

71

79

Expected Return on Plan Assets

V)

Investment Details :
As at
31st March, 2015

As at
31st March, 2014

` in crore

% Invested

` in crore

% Invested

GOI Securities

21

3.42

24

4.64

Public Securities

23

3.79

21

4.08

5

0.78

8

1.52

560

91.04

464

89.0

6

0.97

4

0.76

615

100.00

521

100.00

State Government Securities
Insurance Policies
Others (including bank balances)

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

237

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
VI)

Actuarial assumptions
Gratuity
(Funded)

Compensated Absences
(Unfunded)

2014-15

2013-14

2014-15

2006-08

2006-08

2006-08

2006-08

(Ultimate)

(Ultimate)

(Ultimate)

(Ultimate)

Discount Rate (per annum)

8%

8%

8%

8%

Expected rate of return on Plan Assets (per annum)

8%

8%

-

-

Rate of escalation in Salary (per annum)

6%

6%

6%

6%

Mortality Table

2013-14

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
The Expected Rate of Return on Plan Assets is determined considering several applicable factors, mainly the composition of Plan Assets held, assessed risks, historical results of return on Plan Assets and the Company’s policy for Plan Assets Management.
VII) Amounts recognised in current year and previous four years
(` in crore)
As at 31st March
2015

2014

2013

2012

2011

Defined Benefit Obligation

Gratuity

615

521

500

436

383

Fair value of Plan Assets

615

521

503

394

327

-

-

(3)

42

56

61

(16)

26

17

40

9

3

10

2

2

(Surplus) / Deficit in the plan
Actuarial (Gain) / Loss on Plan Obligation
Actuarial Gain / (Loss) on Plan Assets

VIII) The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2014-15.
23.2 The Company had announced Voluntary Separation Scheme (VSS) for the employees of Silvassa Manufacturing
Division during the previous year. A sum of ` 32,00,000 (Previous Year ` 31 crore) has been paid during the year and debited to the Profit and Loss Statement under the head “Employee Benefits Expense”.
(` in crore)
2014-15

24.

2013-14

1,540

1,867

12

14

815

1,325

2,367

3,206

FINANCE COSTS
Interest Expenses*
Other Borrowing Costs
Applicable loss on foreign currency transactions and translation
TOTAL
*

Interest Expenses are net of Interest Capitalised of ` 1,062 crore (Previous Year ` 701 crore) (Refer Note No.10.5)

(` in crore)
2014-15

25.

2013-14

8,488
8,488

10,634
1,055
790
8,789

DEPRECIATION AND AMORTISATION EXPENSE
Depreciation and Amortisation (Refer Note No. 10)
Less: Transferred from Revaluation Reserve
Less: Transferred from General Reserve
TOTAL

238

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
2014-15

26.

2013-14

OTHER EXPENSES
Manufacturing Expenses
Stores, Chemicals and Packing Materials

4,702
12,299

Repairs to Building
Repairs to Machinery

10,153

1,325

1,288

35

Electric Power, Fuel and Water
Labour Processing, Production Royalty and Machinery Hire Charges

4,446

23

957

Lease Rent

(111)

304

Excise Duty #

786

69

Exchange Difference (Net)

(2)

2

1
19,693

16,584

Selling and Distribution Expenses
Warehousing and Distribution Expenses

5,521

5,119

Sales Tax / VAT

1,063

939

Other Selling and Distribution Expenses

822

724
7,406

6,782

Establishment Expenses
Professional Fees

514

787

General Expenses*

387

316

Rent

107

74

Insurance

721

647

Rates & Taxes

171

108

Other Repairs

267

237

Travelling Expenses

159

131

Payment to Auditors

22

18

Loss on Sale /Discard of Fixed Assets

34

57

805

595

Charity and Donations

3,187

2,970

1,573

715

28,713

25,621

Less: Transferred to Project Development Expenditure
TOTAL
#

Excise Duty shown under expenditure represents the aggregate of excise duty borne by the Company and difference between excise duty on opening and closing stock of finished goods.

*

Includes Write Off of Investments of ` 26,96,800 (Previous Year ` 25 crore).

26.1 Value of Stores, Chemicals and Packing Materials Consumed :
2014-15
% of
` in crore
Consumption

2013-14
` in crore

% of
Consumption

46.28

1,843

41.46

Imported

2,176

Indigenous

2,526

53.72

2,603

58.54

TOTAL

4,702

100.00

4,446

100.00

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

239

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
26.2 Payment to Auditors as :
2014-15
(a)

(b)
(c)

Auditor:
Statutory Audit Fees
Tax Audit Fees
Certification and Consultation Fees
Cost Audit Fees
TOTAL

(` in crore)
2013-14

9
1
11
1
22

8
1
8
1
18

26.3 Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with
Schedule VII thereof : ` 761 crore.
2014-15

27.

(` in crore)
2013-14

2,41,456
3,217
9,788

3,02,630
3,719
4,218

VALUE OF IMPORTS ON CIF BASIS IN RESPECT OF
Raw Materials and Stock-in-Trade
Stores, Chemicals and Packing Materials
Capital Goods

2014-15

28.

(` in crore)
2013-14

2,812
30

3,308
33

-

-

19

19

40

44

224

220

949

1,234

2,060

1,598

1

2

2
1
37

5
1
17

26
225

28
144

12
12

15
2

23

19

94

153

1,218

1,380

EXPENDITURE IN FOREIGN CURRENCY :
Oil and Gas Activity
Repairs to Machinery
(Includes ` 4 crore for SEZ units)
Repairs to Building ` 42,20,904
(Previous Year ` 8,45,220)
Employee Benefits Expense
(Includes ` 12,42,422 for SEZ units)
Sales Promotion Expenses
(Includes ` 23,25,753 for SEZ units)
Brokerage and Commission
(Includes ` 7 crore for SEZ units)
Ocean Freight
(Includes ` 497 crore for SEZ units)
Warehousing and Distribution Expenses
(Includes ` 1,552 crore for SEZ units)
Insurance
(Includes ` 18,10,241 for SEZ units)
Rent
Rates & Taxes
Other Repairs
(Includes ` 2 crore for SEZ units)
Travelling Expenses
Professional Fees
(Includes ` 15 crore for SEZ units)
Charity and Donations
Labour Processing, Production Royalty and Hire Charges
(Includes ` 3 crore for SEZ units)
Bank Charges
(Includes ` 10 crore for SEZ units)
General Expenses
(Includes ` 3 crore for SEZ units)
Interest Expenses
(Includes ` 327 crore for SEZ units)

240

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
2014-15

29.

2,09,169

2,61,118

24

5

205

FOB Value of Exports [Excluding captive transfers to
Special Economic Zone of ` 17,343 crore (Previous Year
` 16,861 crore)]
Interest
Others (includes Guarantee Commission)

30.

2013-14

243

EARNINGS IN FOREIGN EXCHANGE

REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND
The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited to Non-Resident External
Account (NRE A/c). The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remittable in this respect is given herein below:
2014-15 (Final Dividend)

2013-14 (Final Dividend)

a)

Number of Non Resident Shareholders

34,412

37,150

b)

Number of Equity Shares held by them

65,46,96,249

58,20,62,860

622

524

-

-

2013-14

2012-13

2014-15

2013-14

22,719

21,984

3,23,42,13,408

3,23,06,12,815

c)

Amount of Dividend Paid (Gross) (` in Crore)
Tax Deducted at Source

(iii)

31.

(i)
(ii)

Year to which dividend relates

EARNINGS PER SHARE (EPS)
i)

Net Profit after Tax as per Profit and Loss Statement attributable to Equity Shareholders (` in crore)

ii)

Weighted Average number of Equity Shares used as denominator for calculating EPS

iii)

Basic and Diluted Earnings per Share (`)

70.25

68.05

iv)

Face Value per Equity Share (`)

10.00

10.00

31.1 Based on alternate interpretation for calculation of Diluted EPS as per Accounting Standard (AS) 20, the Diluted
EPS for the year ended March’ 15 and year ended March’14 are ` 70.09 and ` 67.89 respectively.
32.

RELATED PARTY DISCLOSURES :
As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

(i)

List of related parties where control exists and related parties with whom transactions have taken place and relationships:
Sr.
No.

Name of the Related Party

1

Achman Commercial Private Limited
(Amalgamated with Reliance Retail Limited w.e.f. 26.12.2014)

2

Adventure Marketing Private Limited (from 07.07.2014)#

3

AETN18 Media Private Limited (from 07.07.2014)#

4

Affinity Names, Inc.

5

Bhagyashri Mercantile Private Limited (from 05.11.2014)

6

Big Tree Entertainment Private Limited (from 07.07.2014)#

7

Capital18 Fincap Private Limited (from 07.07.2014)#

#

Control by Independent Media Trust of which RIL is the sole beneficiary.

Relationship

Subsidiary

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
Sr.
No.

Name of the Related Party

8

Central Park Enterprises DMCC

9

Chitrani Mercantile Private Limited (from 05.11.2014)

10

Colorful Media Private Limited (from 07.07.2014)#

11

Colosceum Media Private Limited (from 07.07.2014)#

12

Delight Proteins Limited
(Amalgamated with Reliance Retail Limited w.e.f. 26.12.2014)

13

Delta Corp East Africa Limited

14

Relationship

Digital18 Media Limited (from 07.07.2014)#

15

E-18 Limited (from 07.07.2014)#

16

e-Eighteen.com Limited (from 07.07.2014)#

17

Equator Trading Enterprises Private Limited (from 07.07.2014)#

18

Ethane Crystal LLC (from 10.09.2014)

19

Ethane Emerald LLC (from 10.09.2014)

20

Ethane Opal LLC (from 10.09.2014)

21

Ethane Pearl LLC (from 10.09.2014)

22

Ethane Sapphire LLC (from 10.09.2014)

23

Ethane Topaz LLC (from 10.09.2014)

24

Gapco Kenya Limited

25

Gapco Rwanda Limited (Up to 05.08.2014)

26

Gapco Tanzania Limited

27

Gapco Uganda Limited

28

Gapoil (Zanzibar) Limited

29

GenNext Innovation Ventures Limited
(Amalgamated with Reliance Industrial Investments and Holdings Limited
w.e.f. 18.12.2014)

30

Gopesh Commercials Private Limited (from 05.11.2014)

31

Greycells18 Media Limited (from 07.07.2014)#

32

Gulf Africa Petroleum Corporation

33

Ibn18 (Mauritius) Limited (from 07.07.2014)#

34

Indiawin Sports Private Limited

35

Infomedia Press Limited (from 07.07.2014)#

36

Infotel Telecom Limited
(Amalgamated with Reliance Jio Infocomm Limited w.e.f. 01.09.2014)

37

Kaizen Capital LLP
(Liquidated w.e.f. 12.08.2014)

38

Kanhatech Solutions Limited

39

LPG Infrastructure (India) Limited
(Amalgamated with Reliance Petro Marketing Limited
w.e.f. 01.09.2014)

40

Mark Project Services Private Limited
(Amalgamated with Reliance Industrial Investments and Holdings Limited
w.e.f. 18.12.2014)

41

Model Economic Township Limited*

42

Moneycontrol Dot Com India Limited (from 07.07.2014)#

43

Nemita Commercials Private Limited (from 05.11.2014)

#
*

Control by Independent Media Trust of which RIL is the sole beneficiary.
Formerly known as Reliance Haryana SEZ Limited.

Subsidiary

241

242

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
Sr.
No.

Name of the Related Party

44

Network 18 Holdings Limited (from 07.07.2014)#

45

Network18 Media & Investments Limited (from 07.07.2014)#

46

Nisarga Commercials Private Limited (from 05.11.2014)

47

Relationship

NW18 HSN Holdings Plc (from 07.07.2014)#

48

Office Depot Reliance Supply Solutions Private Limited (from 27.03.2015)

49

Panorama Television Private Limited (from 07.07.2014)#

50

Prakruti Commercials Private Limited (from 05.11.2014)

51

Prism Tv Private Limited (from 07.07.2014)#

52

Rancore Technologies Private Limited
(Amalgamated with Reliance Jio Infocomm Limited w.e.f. 01.09.2014)

53

RB Holdings Private Limited (from 07.07.2014)#

54

RB Media Holdings Private Limited (from 07.07.2014)#

55

RB Mediasoft Private Limited (from 07.07.2014)#

56

Recron (Malaysia) Sdn. Bhd.

57

Reed Infomedia India Private Limited (from 07.07.2014)#

58

Reliance Aerospace Technologies Limited

59

Reliance Agri Ventures Private Limited
(Amalgamated with Reliance Retail Limited w.e.f. 26.12.2014)

60

Reliance Ambit Trade Private Limited

61

Reliance Aromatics and Petrochemicals Limited

62

Reliance Brands Limited

63

Reliance Chemicals Limited

64

Reliance Clothing India Private Limited

65

Reliance Commercial Land & Infrastructure Limited

66

Reliance Comtrade Private Limited

67

Reliance Convention and Exhibition Centre Limited
(Amalgamated with Reliance Corporate IT Park Limited
w.e.f. 01.09.2014)

68

Reliance Corporate Centre Limited
(Amalgamated with Reliance Corporate IT Park Limited
w.e.f. 01.09.2014)

69

Reliance Corporate IT Park Limited

70

Reliance Corporate Services Limited
(Amalgamated with Reliance Industrial Investments and Holdings Limited
w.e.f. 18.12.2014)

71

Reliance Dairy Foods Limited
(Amalgamated with Reliance Retail Limited w.e.f. 26.12.2014)

72

Reliance do Brasil Industria e Comercio de Produtos Texteis,
Quimicos, Petroquimicos e Derivados Ltda.

73

Reliance Eagleford Midstream LLC

74

Reliance Eagleford Upstream GP LLC

75

Reliance Eagleford Upstream Holding LP

76

Reliance Eagleford Upstream LLC

77

Reliance Eminent Trading & Commercial Private Limited

78

Reliance Energy and Project Development Limited

79

Reliance Energy Generation and Distribution Limited

80

Reliance Ethane Holding Pte. Ltd. (from 04.09.2014)

#

Control by Independent Media Trust of which RIL is the sole beneficiary.

Subsidiary

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
Sr.
No.

Name of the Related Party

81

Reliance Exploration & Production DMCC

82

86
87

Reliance F&B Services Limited
(Amalgamated with Reliance Retail Limited w.e.f. 26.12.2014)
Reliance Financial Distribution and Advisory Services Limited
(Amalgamated with Reliance Retail Limited w.e.f. 26.12.2014)
Reliance Food Processing Solutions Limited
(Amalgamated with Reliance Retail Limited w.e.f. 26.12.2014)
Reliance Gas Corporation Limited
(Amalgamated with Reliance Industrial Investments and Holdings Limited
w.e.f. 18.12.2014)
Reliance Gas Pipelines Limited
Reliance Global Business B.V.

88

Reliance Global Commercial Limited

89

Reliance Global Energy Services (Singapore) Pte. Ltd.

90

Reliance Global Energy Services Limited

91
92

Reliance Holding USA, Inc.
Reliance Industrial Investments and Holdings Limited

83
84
85

93

Reliance Industries (Middle East) DMCC

94

96

Reliance Industries Investment and Holding Limited
(Amalgamated with Reliance Industrial Investments and Holdings Limited
w.e.f. 18.12.2014)
Reliance Infrastructure Management Services Limited
(Amalgamated with Reliance Corporate IT Park Limited w.e.f. 01.09.2014)
Reliance Innovative Building Solutions Private Limited (from 30.03.2015)

97
98
99
100
101
102

Reliance Jio Infocomm Limited
Reliance Jio Infocomm Pte. Ltd.
Reliance Jio Infocomm UK Limited
Reliance Jio Infocomm USA, Inc.
Reliance Jio Messaging Services Private Limited^
Reliance Lifestyle Holdings Limited

103
104
105
106

Reliance Marcellus Holding LLC
Reliance Marcellus LLC
Reliance Marcellus II LLC
Reliance Nutritious Food Products Limited
(Amalgamated with Reliance Retail Limited w.e.f. 26.12.2014)
Reliance Payment Solutions Limited

Relationship

95

107
108
109
110

Reliance People Serve Limited
(Amalgamated with Reliance Corporate IT Park Limited w.e.f. 01.09.2014)
Reliance Petro Marketing Limited
Reliance Petroinvestments Limited

111

Reliance Polyolefins Limited

112
113
114
115

Reliance Progressive Traders Private Limited
Reliance Prolific Commercial Private Limited
Reliance Prolific Traders Private Limited
Reliance Retail Finance Limited

116

Reliance Retail Insurance Broking Limited

117

Reliance Retail Limited

^

Formerly known as Reliance Jio Electronics Private Limited

Subsidiary

243

244

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
Sr.
No.
118
119
120

121
122

Name of the Related Party

Relationship

Reliance Retail Ventures Limited
Reliance Review Cinema Limited
(Amalgamated with Reliance Retail Limited w.e.f. 26.12.2014)
Reliance Security Solutions Limited
(Amalgamated with Reliance Industrial Investments and Holdings Limited
w.e.f. 18.12.2014)
Reliance Sibur Elastomers Private Limited
Reliance Strategic (Mauritius) Limited
(Liquidated w.e.f. 23.04.2014)

123

Reliance Strategic Investments Limited

124

Reliance Style Fashion India Private Limited
(Amalgamated with Reliance Brands Limited w.e.f. 01.10.2014)
Reliance Styles India Limited
(Amalgamated with Reliance Brands Limited w.e.f. 01.10.2014)

125
126

Reliance Textiles Limited (from 23.03.2015)

127

Reliance Trading Limited

128
129

Reliance Universal Commercial Limited
Reliance Universal Enterprises Limited

130

Reliance Universal Traders Private Limited

131

Reliance USA Gas Marketing LLC

132

Reliance Vantage Retail Limited

133

Reliance Ventures Limited

134

Reliance World Trade Private Limited#

135

Reliance Jio Digital Services Private Limited (from 22.09.2014)

136

Reliance Jio Global Resources LLC (from 15.01.2015)

137

Reliance Jio Media Private Limited (from 02.01.2015)

138

Reliance-GrandOptical Private Limited

139

Resolute Land Consortium Projects Limited**

140
141

RIL (Australia) Pty Ltd
RIL USA, Inc.

142

RRB Investments Private Limited (from 07.07.2014)#

143

RRB Mediasoft Private Limited (from 07.07.2014)#

144

RRK Finhold Private Limited (from 07.07.2014)#

145

RVT Finhold Private Limited (from 07.07.2014)#

146

RVT Media Private Limited (from 07.07.2014)#

147

Setpro18 Distribution Limited (from 07.07.2014)#

148

Stargaze Entertainment Private Limited (from 07.07.2014)#

149

Strategic Manpower Solutions Limited

150

Surela Investment and Trading Private Limited

151

Television Eighteen Mauritius Limited (from 07.07.2014)#

152

Television Eighteen Media & Investments Limited (from 07.07.2014)#

153

Transenergy (Kenya) Limited

154

TV18 Broadcast Limited (from 07.07.2014)#

155

TV18 Home shopping Network Limited (from 07.07.2014)#

156

Vijayant Commercials Private Limited (from 05.11.2014)

**
#

Formerly known as Model Economic Township Limited
Control by Independent Media Trust of which RIL is the sole beneficiary.

Subsidiary

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
Sr.
No.
157

Name of the Related Party

Relationship

Watermark Infratech Private Limited (from 07.07.2014)#

158

Wave Land Developers Limited

159

Web18 Holdings Limited (from 07.07.2014)#

160

Web18 Software Services Limited (from 07.07.2014)#

161

GenNext Ventures Fund

162

Independent Media Trust

163

Subsidiary

Petroleum Trust

Company / Subsidiary is a beneficiary 164

Gujarat Chemical Port Terminal Company Limited

165

Indian Vaccines Corporation Limited

166

Reliance Commercial Dealers Limited

167

Reliance Europe Limited

168

Reliance Gas Transportation Infrastructure Limited

169

Reliance Industrial Infrastructure Limited

170

Reliance LNG Limited

171

Reliance Ports and Terminals Limited

172

Reliance Utilities and Power Private Limited

173

Shri Mukesh D. Ambani

174

Shri Nikhil R. Meswani

175

Shri Hital R. Meswani

176

Associates

Shri P. M. S. Prasad

Key Managerial Personnel

177

Shri P. K. Kapil

178

Smt. Nita M. Ambani

179

Dhirubhai Ambani Foundation

180

Hirachand Govardhandas Ambani Public Charitable Trust

181

HNH Trust and HNH Research Society

182

Jamnaben Hirachand Ambani Foundation

183

Reliance Foundation

#

(ii)

Relative of
Key Managerial Personnel
Enterprises over which Key
Managerial Personnel are able to exercise significant influence

Control by Independent Media Trust of which RIL is the sole beneficiary.

Transactions during the year with related parties :
(` in crore)

Sr.
No.

Nature of Transactions (Excluding
Reimbursements)

1.

Purchase of Fixed Assets

2.

Purchase / Subscription of Investments

3.

Redemption of Investments

4.

Capital Advances Given / (Returned)

5.

Net Loans and Advances, Deposits Given
/ (Returned)

Subsidiaries/
Beneficiary

Associates

Key
Managerial
Personnel/
Relative

2,434
2,063
11,506
22,620
150
7,179
133
3,910

264
44
(8)
7
166
36

-

Others

TOTAL

-

2,698
2,107
11,506
22,620
150
7,179
(8)
7
299
3,946

245

246

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
Sr.
No.

Nature of Transactions (Excluding
Reimbursements)

6.

Revenue from Operations

7.

Other Income

8.

Purchases / Material Consumed

9.

Electric Power, Fuel and Water

10.

Hire Charges

11.

Employee Benefits Expense

12.
13.

Payment to Key Managerial Personnel /
Relative
Sales and Distribution Expenses

14.

Rent

15.

Professional Fees

16.

General Expenses

17.

Donations

18.

Finance Costs

19.

Investment written off

Balance as at 31st March, 2015
20. Investments
21.

Trade Receivables

22.

Capital Advances

23.

Loans and Advances

24.

Deposits

25.

Trade and Other Payables

26.

Finance Lease Obligations

27.

Financial Guarantees

28.

Performance Guarantees

Note :
Figures in italic represents Previous Year’s amounts.

Associates

Key
Managerial
Personnel/
Relative

Others

TOTAL

24,395
28,394
1,536
1,068
1,562
2,575
10
16
147
171
990
592
45
29
12
14
25

428
403
27
8
267
184
1,579
1,466
622
523
2,767
2,885
7
8
42
51
293
274
-

48
47
-

742
529
-

24,823
28,797
1,563
1,076
1,829
2,759
1,579
1,466
622
523
10
16
48
47
2,914
3,056
7
8
1,032
643
338
303
742
529
12
14
25

43,758
32,402
2,396
4,620
26,743
26,092
462
380
121
146
33,685
30,993
159
159

2,085
2,085
21
39
8
9
14
1,666
1,499
253
309
1
1,733
1,315
115
114

-

-

45,843
34,487
2,417
4,659
8
26,752
26,106
1,666
1,499
715
689
121
147
35,418
32,308
274
273

Subsidiaries/
Beneficiary

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

247

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
Disclosure in Respect of Major Related Party Transactions during the year :
(` in crore)
Particulars

1

Recron (Malaysia) Sdn. Bhd.
Reliance Corporate IT Park Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Petro Marketing Limited
Reliance Progressive Traders Private Limited
Reliance Retail Limited
Reliance Universal Traders Private Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Industrial Infrastructure Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited

2

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate
Associate

100
1,963
105
1
215
31
18
2
46
8
198
10

2,031
31
1
4
3
36
-

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

20
752
215
1,100
7,052
1

1
222
22,397
-

Subsidiary
Subsidiary
Subsidiary
Company / Subsidiary is a beneficiary

30
1,236
11
1,089

-

Subsidiary
Subsidiary

150
-

32
7,147

Associate
Associate

(3)
(5)

2
5

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate

1,846
(78)
(1,782)
(1,737)
1,650
234
11
155

(11)
945
(1)
7
33
1,635
817
471
14
36
-

Capital Advances Given / (Returned)
Reliance Industrial Infrastructure Limited
Reliance Utilities and Power Private Limited

5

2013-14

Redemption of Investments
Reliance Global Business B.V.
Reliance Jio Infocomm Limited

4

2014-15

Purchase / Subscription of Investments
Reliance Ambit Trade Private Limited
Reliance Energy Generation and Distribution Limited
Reliance Ethane Holding Pte. Ltd.
Reliance Gas Pipelines Limited
Reliance Global Business B.V.
Reliance Industrial Investments and Holdings Limited
Reliance Jio Infocomm Limited
Reliance Jio Messaging Services Private Limited
(Formerly known as Reliance Jio Electronics Private Limited)
Reliance Prolific Commercial Private Limited
Reliance Prolific Traders Private Limited
Reliance Universal Traders Private Limited
Independent Media Trust

3

Relationship

Purchase of Fixed Assets

Net Loans and Advances, Deposits Given / (Returned)
Reliance Brands Limited
Reliance Corporate IT Park Limited
Reliance Energy Generation and Distribution Limited
Reliance Exploration & Production DMCC
Reliance Gas Pipelines Limited
Reliance Industrial Investments and Holdings Limited
Reliance Retail Limited
Reliance Strategic Investments Limited
Reliance Ventures Limited
Gujarat Chemicals Port Terminal Company Limited
Reliance Commercial Dealers Limited

248

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
Particulars

6

Gapco Kenya Limited
Gapco Tanzania Limited
LPG Infrastructure (India) Limited
Recron (Malaysia) Sdn. Bhd.
Reliance Commercial Land & Infrastructure Limited
Reliance Corporate IT Park Limited
Reliance Gas Pipelines Limited
Reliance Global Energy Services (Singapore) Pte. Ltd.
Reliance Industrial Investments and Holdings Limited
Reliance Jio Infocomm Limited
Reliance Petro Marketing Limited
Reliance Retail Limited
RIL USA, Inc.
Reliance Commercial Dealers Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited

7

2014-15

2013-14

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate

9,089
2,013
2
4
1,969
1,064
415
644
210
8,985
15
49
363

9,898
1,972
458
2,685
1
12
948
546
156
567
11,149
12
69
2
320

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate

2
3
1
8
205
1
1
2
149
812
23
42
61
157
61
8
10
13
1
3

2
6
1
5
26
5
204
557
48
66
35
98
12
4
1
3

Subsidiary
Subsidiary
Associate
Associate
Associate
Associate

1,561
1
3
3
19
241

2,550
25
4
13
167

Other Income
Gapco Kenya Limited
Gapco Tanzania Limited
Gapco Uganda Limited
Recron (Malaysia) Sdn. Bhd.
Reliance Corporate IT Park Limited
Reliance Exploration & Production DMCC
Reliance Gas Pipelines Limited
Reliance Global Energy Services (Singapore) Pte. Ltd.
Reliance Holding USA, Inc.
Reliance Industrial Investments and Holdings Limited
Reliance Industries (Middle East) DMCC
Reliance Jio Infocomm Limited
Reliance Retail Limited
Reliance Strategic Investments Limited
Reliance Ventures Limited
RIL USA, Inc.
Gujarat Chemical Port Terminal Company Limited
Reliance Europe Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited

8

Relationship

Revenue from Operations

Purchases / Material Consumed
Reliance Industries (Middle East) DMCC
Reliance Petro Marketing Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Industrial Infrastructure Limited
Reliance Ports and Terminals Limited

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

249

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
Particulars

9

Reliance Utilities and Power Private Limited

10

Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri P. M. S. Prasad
Shri P. K. Kapil
Smt Nita M. Ambani

90
194
37
301

86
185
26
226

Subsidiary
Subsidiary
Subsidiary

10

1
4
11

Key Managerial
Personnel
Key Managerial
Personnel
Key Managerial
Personnel
Key Managerial
Personnel
Key Managerial
Personnel
Relative of Key
Managerial Personnel

15

15

12

12

12

12

6

6

2

2

1

-

Subsidiary
Subsidiary
Associate
Associate

146
1
16
2,751

171
16
2,869

Associate

7

8

Subsidiary
Subsidiary
Associate
Associate

990
25
17

25
567
32
19

Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate

1
13
31
282
7
3

12
17
274
-

Others
Others
Others

2
4
735

1
8
520

General Expenses
Big Tree Entertainment Private Limited
Indiawin Sports Private Limited
Reliance Retail Limited
Reliance Commercial Dealers Limited
Reliance Europe Limited
Reliance Ports and Terminals Limited

17

Associate
Associate
Associate
Associate

Professional Fees
Indiawin Sports Private Limited
Reliance Corporate IT Park Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited

16

1,466

Rent
Reliance Industrial Infrastructure Limited

15

1,579

Sales and Distribution Expenses
Recron (Malaysia) Sdn. Bhd.
Reliance Retail Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Ports and Terminals Limited

14

Associate

Payment To Key Managerial Personnel / Relative
Shri Mukesh D. Ambani

13

2013-14

Employee Benefits Expense
Reliance F&B Services Limited
Reliance People Serve Limited
Reliance Retail Limited

12

2014-15

Hire Charges
Gujarat Chemical Port Terminal Company Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Industrial Infrastructure Limited
Reliance Ports and Terminals Limited

11

Relationship

Electric Power, Fuel and Water

Donations
Hirachand Govardhandas Ambani Public Charitable Trust
Jamnaben Hirachand Ambani Foundation
Reliance Foundation

250

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
Particulars

18

Relationship

2013-14

Subsidiary

12

14

Subsidiary

Reliance Corporate IT Park Limited

19

2014-15

-

25

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate

2
3
1
8
1
2,976
3,263
33
17,890
2,263
302
6
3

2
2
1
1
969
3,263
80
33
35
19,443
1,745
503
14
6
8

Associate
Associate
Associate
Associate

111
155
1,050
350

99
1,050
350

Finance Costs

Investment Written Off
RIL (Australia) Pty Ltd (` 26,96,800)

Balances as at 31st March, 2015
20

Loans and Advances
Gapco Kenya Limited
Gapco Tanzania Limited
Gapco Uganda Limited
Recron (Malaysia) Sdn. Bhd.
Reliance Brands Limited
Reliance Corporate IT Park Limited
Reliance Energy Generation and Distribution Limited
Reliance Exploration & Production DMCC
Reliance Gas Pipelines Limited
Reliance Holding USA, Inc.
Reliance Industrial Investments and Holdings Limited
Reliance Retail Limited
Reliance Strategic Investments Limited
Reliance Ventures Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Europe Limited

21

Deposits
Gujarat Chemical Port Terminal Company Limited
Reliance Commercial Dealers Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited

33.1 (a)

Disclosure of the Company’s Interest in Oil and Gas Joint Ventures (Jointly Controlled Assets):
Sr.
No.
1

Name of the Fields in the Joint Ventures
Panna Mukta

2

Tapti

3

NEC - OSN - 97/2

4

KG - DWN - 98/3

5
6
7
8

GS - OSN - 2000/1
CY-DWN-2001/2
CB-ONN-2003/1
Block M-17

9

Block M-18

Company’s
Partners and their Participating Interest (PI)
% Interest
30%
(30%) BG Exploration & Production India Limited - 30% ;
Oil and Natural Gas Corporation Limited - 40%
30%
(30%) BG Exploration & Production India Limited - 30% ;
Oil and Natural Gas Corporation Limited - 40%
60%
(60%) Niko (NELPIO) Limited - 10% ;
BP Exploration (Alpha) Limited - 30%
60%
(60%) Niko (NECO) Limited - 10% ;
BP Exploration (Alpha) Limited - 30%
90%
(90%) Hardy Exploration and Production (India) Inc. - 10%
70%
(70%) BP Exploration (Alpha) Limited - 30%
70%
(70%) BP Exploration (Alpha) Limited - 30%
96%
United National Resources Development Services
Company Limited (UNRD) - 4%
96%
United National Resources Development Services
Company Limited (UNRD) - 4%

Figures in bracket represent Previous Year’s (%) Interest.

Country
India
India
India
India
India
India
India
Myanmar
Myanmar

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

251

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(b)

Disclosure of the Blocks surrendered during the year:
Sr. No.

33.2 (a)

Name of the Fields

% Interest

1
2

KG-DWN-2003/1
CY-PR-DWN-2001/3

60%
70%

Net Quantities of Company's Interest (on gross basis) in Proved Reserves and Proved Developed Reserves :
Proved Reserves
(Million MT)
2014-15
2013-14
Oil:
Beginning of the year
Revision of estimates
Production
Closing balance for the year

2.47
(0.06)
(0.45)
1.96

2.46
0.47
(0.46)
2.47

Proved Reserves
(Million M3*)
2014-15
2013-14
Gas:
Beginning of the year
Revision of estimates
Production
Closing balance for the year
*

86,230
(17,047)
(3,442)
65,741

97,285
(7,195)
(3,860)
86,230

Proved Developed Reserves
(Million MT)
2014-15
2013-14
2.09
(0.17)
(0.45)
1.47

1.82
0.73
(0.46)
2.09

Proved Developed Reserves
(Million M3*)
2014-15
2013-14
15,444
6,810
(3,442)
18,812

18,470
834
(3,860)
15,444

1 cubic meter (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl

(b)

In case of producing field and fields where development of drilling activities are in progress, the geological and reservoir simulation are updated as and when new well information is available. In all cases, reserve evaluation is carried out at least once in a year.

(c)

The reserves estimates related to KGD6 and NEC25 have been revised. During the year, the Company recognized reserves towards CB10 block post review of Declaration of Commerciality (DoC) by Management Committee.

(d)

The Government of India (GoI), by its letters dated 2nd May 2012, 14th November 2013 and 10th July 2014 has communicated that it proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to KG-DWN-98/3 entitles the Company to recover. Based on legal advice received, the Company continues to maintain that a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the GoI to disallow the recovery of any Contract Cost as defined in the PSC. The Company has already referred the issue to arbitration and already communicated the same to GoI for the resolution of dispute. Pending decision of the arbitration, the demand from the GoI of $ 117 million ( ` 731 crores) being the Company’s share (total demand $ 195 million) towards additional Profit Petroleum has been considered as contingent liability.

(e)

In supersession of the Ministry’s Gazette notification no. 22011/3/2012-ONG.D.V. dated 10th January, 2014, the GoI notified the New Domestic Natural Gas Pricing Guidelines, 2014, on 25th October 2014. As per new notification, GoI had revised the price of Gas to $ 5.05 per MMBTU on Gross Calorific Value (GCV) basis from the existing price of $ 4.205 on Net Calorific Value (NCV) basis per MMBTU with effect from 01st November
2014 for the period from November 2014 to March 2015. Consequent to the aforesaid dispute referred to under 33.2 (d) above which has been referred to arbitration, the GoI has directed the Company to instruct customers to deposit differential revenue on gas sales from D1D3 field on account of the price determined under the guidelines converted to NCV basis and the prevailing price prior to 1st November 2014 ($ 4.205 per
MMBTU) to be credited to the gas pool account maintained by GAIL (India) Limited. The amount so deposited by customer to Gas Pool Account is ` 147 crore as at 31st March 2015 is disclosed under Other Long Term
Loans and Advances. Revenue has been recognized at the GoI notified price of $ 5.05 MMBTU on GCV basis, in respect of gas quantities sold from D1D3 field from 1st November 2014.

252

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
As at
31st March, 2015

34.
(I)

(B)

(C)

(B)

**

414
1,433

35,418

32,308

274

290

20
17,704

700
4,843

1,121

4,970

865
20,569

1,168
25,349

787
1,315

1,563
2,917

Claims against the Company / disputed liabilities not acknowledged as debts*
(a) In respect of Joint Ventures
(b) In respect of Others
Guarantees
(i)
Guarantees to Banks and Financial Institutions against credit facilities extended to third parties and other Guarantees
(a) In respect of Joint Ventures
(b) In respect of Others
(ii) Performance Guarantees
(a) In respect of Joint Ventures
(b) In respect of Others
(iii) Outstanding Guarantees furnished to Banks and Financial
Institutions including in respect of Letters of Credits
(a) In respect of Joint Ventures
(b) In respect of Others
Other Money for which the Company is contingently liable
(i)
Liability in respect of bills discounted with Banks (Including third party bills discounting)
(a) In respect of Joint Ventures
(b) In respect of Others

Commitments
(A)

*

798
1,770

CONTINGENT LIABILITIES AND COMMITMENTS
Contingent Liabilities
(A)

(II)

As at
31st March, 2014

Estimated amount of contracts remaining to be executed on capital account and not provided for:
(a) In respect of Joint Ventures
(b) In respect of Others
Other Commitments
(a) Sales Tax deferral liability assigned
(b) Guarantee against future cash calls **

The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
The Company has issued Guarantees against future cash calls to be made by JV Partners of its wholly owned subsidiary Reliance Marcellus
LLC.

(III)

The Income-Tax Assessments of the Company have been completed up to Assessment Year 2010-11. The assessed tax liability exceeds the provision made, by ` 509 crore as on 31st March, 2015. Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

35.

FINANCIAL AND DERIVATIVE INSTRUMENTS
a)
Derivative contracts entered into by the Company and outstanding as on 31st March, 2015
(i)

For Hedging Currency and Interest Rate Related Risks:
Nominal amounts of derivative contracts entered into by the Company and outstanding as on 31st March,
2015 amount to ` 1,61,205 crore (Previous Year ` 1,03,772 crore). Category wise break up is given below:
Sr.
No.
1
2
3
4

Particulars
Forward Contract
Currency Swap
Interest Rate Swap
Option

As at 31st March, 2015
Amount
(` in Crore)
84,137
1,356
69,218
6,494

As at 31st March, 2014
Amount
(` in Crore)
66,733
1,772
32,851
2,416

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

253

Standalone

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015
(ii)

For Hedging Commodity related risks :
Category wise break up is given below :

Sr.
Particulars
No.
1

Forward swaps

(in Kbbl)
As at 31st March, 2014
Petroleum
Feedstock
Product
16,544
21,321

As at 31st March, 2015
Petroleum
Feedstock
Product
40,389
49,460

2

Futures

11,844

23,980

6,308

7,066

3

Spreads

88,393

1,04,653

35,456

86,016

4

Option

12,150

1,30,618

-

36,550

In addition the Company has net margin hedges outstanding for contracts relating to petroleum product sales of 88,508 kbbl (Previous Year 1,05,627 kbbl).
b)

Foreign Currency Exposures that are not hedged by derivative instruments as on 31st March 2015 amount to
` 82,812 crore (Previous Year ` 64,918 crore). The unhedged exposures are naturally hedged by future foreign currency earnings and earnings linked to foreign currency.

36. As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the
Notes to Consolidated Financial Statements.

37. DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186 (4) OF THE
COMPANIES ACT, 2013
Loans given and Investments made are given under the respective heads.
Corporate Guarantees given by the Company in respect of loans as at 31st March, 2015
(` in crore)
Sr.
No.
1.
2.
3.
4.
5.

As at
As at
31st March, 2015 31st March, 2014
1,539
1,655
18,750
17,975
16,813
11,737
547
674
69
66

Name of the Company
Reliance Global Business B.V.
Reliance Holding USA, Inc.
Reliance Jio Infocomm Limited
RIL USA, Inc.
Reliance Industries (Middle East) DMCC

For and on behalf of the Board

As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Alok Agarwal
Chief Financial Officer

Srikanth Venkatachari
Joint Chief Financial Officer

K. Sethuraman
Company Secretary

Mumbai
Date : April 17,2015

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani

- Chairman & Managing Director
Executive Directors

Directors

254

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

255 / Independent Auditors’ Report on
Consolidated Financial Statements
256 / Consolidated Balance Sheet
257 / Consolidated Profit and Loss Statement
258 / Consolidated Cash Flow Statement
260 / Significant Accounting Policies on
Consolidated Accounts
261 / Notes on Consolidated Financial Statements
310 / Salient features of Financial Statements of
Subsidiaries/Associates/Joint Ventures

CONSOLIDATED
FINANCIAL
STATEMENTS &
NOTES

Annual Report 2014-15

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

Consolidated

INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF
RELIANCE INDUSTRIES LIMITED
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
We have audited the accompanying consolidated financial statements of RELIANCE INDUSTRIES LIMITED (“the Company”), its subsidiaries and its joint ventures (collectively referred to as
“the Group”) which comprise the Consolidated Balance Sheet as at 31st March, 2015, the Consolidated Profit and Loss Statement and the Consolidated Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
MANAGEMENT’S RESPONSIBILITY FOR THE
CONSOLIDATED FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these consolidated financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Group in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of the appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation and presentation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.

OPINION
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of other auditors, on the financial statements
/ consolidated financial statements of the subsidiaries and associates noted below, the aforesaid consolidated financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at 31st March, 2015, and its consolidated profit and its consolidated cash flows for the year ended on that date.
OTHER MATTERS
1. Consolidated financial statements and other financial information include the Company’s proportionate share in jointly controlled assets of ` 967 crore, liabilities of ` 190 crore, expenditure of ` 440 crore and the elements making up the Cash Flow Statement and related disclosures in respect of an unincorporated joint venture which is based on statements from the respective operators and have been certified by the Management.
2. Financial statements / consolidated financial statements of certain subsidiaries which reflect total assets of ` 1,26,523 crore as at March 31, 2015, total revenues of ` 61,384 crore and net cash flows amounting to (` 688 crore) for the year then ended, have been audited by one or jointly by two of us or two of us with other and financial statements of certain associates in which the share of profit (net) of the Group is
` 10 crore have been audited by one of us.
3. We did not audit the financial statements / consolidated financial statements of certain subsidiaries, whose financial statements / consolidated financial statements reflect total assets of ` 55,214 crore as at March 31, 2015 / December 31,
2014, total revenues of ` 9,940 crore and net cash flows of
` 304 crore for the year then ended on that date and financial statements of certain associates in which the share of profit of the Group is ` 22 crore. These financial statements / consolidated financial statements have been audited by other auditors whose reports have been furnished to us and our opinion is based solely on the reports of the other auditors. 4. We have relied on the unaudited financial statements / consolidated financial statements of certain subsidiaries whose financial statements / consolidated financial statements reflect total assets of ` 5,548 crore, total revenue of ` 11 crore, cash flows amounting to (` 2 crore) for the year then ended on that date and on the unaudited financial statements of an associate wherein the Group’s share of profit aggregate ` Nil. These unaudited financial statements
/ consolidated financial statements as approved by the respective Board of Directors of these companies have been furnished to us by the Management and our report insofar as it relates to the amounts included in respect of these subsidiaries and associates is based solely on such approved unaudited financial statements / consolidated financial statements. Our report is not qualified in respect of other matters.
For Chaturvedi & Shah
Chartered Accountants
(Registration No. 101720W)

For Deloitte Haskins & Sells LLP
For Rajendra & Co.
Chartered Accountants
Chartered Accountants
(Registration No. 117366W/ W-100018) (Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611

A. B. Jani
Partner
Membership No.: 46488

Mumbai
Date : April 17, 2015

A. R. Shah
Partner
Membership No.:47166

255

256

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

RELIANCE INDUSTRIES LIMITED
CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2015
(` in crore)
Note

As at
31st March, 2015

As at
31st March, 2014

EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital
Reserves and Surplus

1
2

Share Application Money Pending Allotment
Minority Interest
Non-Current Liabilities
Long Term Borrowings
Deferred Payment Liabilities
Deferred Tax Liability (net)
Other Long Term Liabilities
Long Term Provisions

2,943
2,15,539
2,18,482
17
3,038

1
3
4
5
6

2,940
1,95,730
1,98,670
17
959

1,20,777
7,388
12,974
1,703
1,554

1,01,016
3
11,925
807
290
1,44,396

Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions

7
8
9
10

1,14,041

27,965
59,407
45,789
5,392

32,792
60,860
17,058
4,446
1,38,553
5,04,486

TOTAL

1,15,156
4,28,843

ASSETS
Non-Current Assets
Fixed Assets
Tangible Assets
Intangible Assets
Capital Work-in-Progress
Intangible Assets under Development
Goodwill on Consolidation
Non-Current Investments
Long Term Loans and Advances
Other Non-Current Assets

11
11
11
11
12
13
14

99,198
52,863
1,06,256
60,206
4,397
25,437
19,538
14

97,200
44,217
48,646
42,848
26,867
17,996
3,67,909

Current Assets
Current Investments
Inventories
Trade Receivables
Cash and Bank Balances
Short Term Loans and Advances
Other Current Assets

15
16
17
18
19
20

33,735
56,720
9,411
37,984
9,965
3,254
1,51,069
4,28,843

1 to 37
For and on behalf of the Board

As per our Report of even date
For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Alok Agarwal
Chief Financial Officer

Srikanth Venkatachari
Joint Chief Financial Officer

K. Sethuraman
Company Secretary

Mumbai
Date : April 17,2015

51,014
53,248
5,315
12,545
11,171
3,284
1,36,577
5,04,486

TOTAL
Significant Accounting Policies
See accompanying Notes to the Financial Statements

For Chaturvedi & Shah
Chartered Accountants

2,77,774

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani

- Chairman & Managing Director
Executive Directors

Directors

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Shareholder Information

257

Consolidated

RELIANCE INDUSTRIES LIMITED
CONSOLIDATED PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2015
(` in crore)
Note

2014-15

2013-14

INCOME
Revenue from Operations
Sale of Products

3,79,992

Income from Services

4,42,581

8,502

Net Revenue from Operations

4,46,339

13,059

Less: Excise Duty / Service Tax Recovered

3,758

3,88,494

11,879
3,75,435

4,34,460

8,613

9,001

3,84,048

4,43,461

Cost of Materials Consumed

2,66,862

3,46,491

Purchases of Stock-in-Trade

25,701

17,091

22

1,483

(560)

Employee Benefits Expense

23

6,262

5,572

Finance Costs

24

3,316

3,836

Depreciation / Amortisation and Depletion Expense

25

11,547

11,201

Other Expenses

26

37,763

31,067

3,52,934

4,14,698

31,114

28,763

6,296

5,929

Other Income

21

TOTAL REVENUE

EXPENDITURE

Changes in Inventories of Finished Goods,
Stock-in-Process and Stock-in-Trade

TOTAL EXPENSES
Profit Before Tax
Tax Expenses
Current Tax
Deferred Tax

1,178

286

23,640

22,548

(74)

(55)

23,566

Profit for the year (before adjustment for Minority Interest)

22,493

80.11

76.55

Add: Share of (Profit) transferred to Minority Interest
Profit for the year (after adjustment for Minority Interest)
Earnings per equity share of face value of ` 10 each
Basic and Diluted (in `)

27

Significant Accounting Policies
See accompanying Notes to the Financial Statements

1 to 37
For and on behalf of the Board

As per our Report of even date
For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Alok Agarwal
Chief Financial Officer

Srikanth Venkatachari
Joint Chief Financial Officer

K. Sethuraman
Company Secretary

Mumbai
Date : April 17,2015

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani

- Chairman & Managing Director
Executive Directors

Directors

258

Reliance Industries Limited

Invest. Innovate. Inspire. For a new India.

Annual Report 2014-15

RELIANCE INDUSTRIES LIMITED
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR 2014-15
(` in crore)
2014-15

2013-14

31,114

28,763

A: CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Tax as per Profit and Loss Statement
Adjusted for:
Miscellaneous Expenditure written off
Share in Income of Associates
Investment written off (Net)
Loss on Sale / Discard of Assets (Net)
Depreciation / Amortisation and Depletion Expense
Effect of Exchange Rate Change
Profit on De-subsidiarisation of Subsidiary
Net gain on Sale of Investments
Dividend Income
Interest Income
Finance Costs

38

32

(118)

(90)

-

3

68

2

11,547

11,201

1,372

3,272

(8)

-

(3,516)

(2,493)

(306)

(175)

(4,513)

(5,907)

3,316

3,836
7,880
38,994

Operating Profit before Working Capital Changes

9,681
38,444

Adjusted for:
Trade and Other Receivables

1,097

(1,913)

Inventories

3,472

(1,396)

(2,754)

14,339

Trade and Other Payables

1,815
Cash Generated from Operations

40,809

49,474

Taxes Paid (Net)

(6,435)

(6,213)

Net Cash from Operating Activities

B:

11,030

34,374

43,261

(63,364)

(60,087)

402

148

(6,78,241)

(7,65,659)

Sale / Redemption of Investments

6,66,383

7,49,849

Movement in Loans and Advances

(232)

(426)

Maturity of / (Investment in) Fixed Deposits

3,551

(3,624)

Interest Income

6,055

6,413

548

316

(64,898)

(73,070)

CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets
Sale of Fixed Assets
Purchase of Investments

Dividend Income
Net Cash (Used in) Investing Activities

02-45

46-103

104-201

202-315

316-348

Corporate Overview

Management Review

Governance

Financial Statements

Sharehold